Here is what you need to know on Friday, September 1:
The US Dollar holds steady following Wednesday's rally as investors move to the sidelines ahead of key data releases. August jobs report, which will include Nonfarm Payrolls and wage inflation figures, and the ISM's Manufacturing PMI survey will be featured in the US economic docket. Statistics Canada will also release second-quarter Gross Domestic Product growth data in the early American session.
The US data showed on Thursday that the Core Personal Consumption Expenditures (PCE) Price Index rose 4.2% on a yearly basis in July, compared to 4.1% in June. Additionally, the weekly Initial Jobless Claims declined to 228,000 and came in better than the market expectation of 235,000. Following these data releases, the US Dollar Index (DXY) extended its daily recovery and gained nearly 0.5% on Thursday, snapping a three-day losing streak. Early Friday, DXY consolidates its gains above 103.50. In the meantime, the 10-year US Treasury bond yield continues to move sideways at around 4.1% and US stock index futures trade flat.
Nonfarm Payrolls Forecast: US labor market expected to show further signs of cooling in August.
US Dollar price today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.03% | 0.09% | 0.05% | 0.47% | 0.03% | 0.40% | -0.11% | |
| EUR | 0.04% | 0.13% | 0.07% | 0.49% | 0.04% | 0.42% | -0.06% | |
| GBP | -0.09% | -0.12% | -0.04% | 0.40% | -0.06% | 0.32% | -0.20% | |
| CAD | -0.05% | -0.08% | 0.05% | 0.43% | -0.03% | 0.35% | -0.15% | |
| AUD | -0.47% | -0.51% | -0.37% | -0.43% | -0.46% | -0.08% | -0.58% | |
| JPY | -0.03% | -0.03% | 0.09% | 0.03% | 0.45% | 0.40% | -0.11% | |
| NZD | -0.40% | -0.42% | -0.29% | -0.35% | 0.07% | -0.38% | -0.49% | |
| CHF | 0.11% | 0.06% | 0.20% | 0.14% | 0.57% | 0.11% | 0.49% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
In the Asian session, the data from China revealed that the Caixin Manufacturing PMI rose to 51 in August from 49.2, highlighting an expansion in the manufacturing sector's business activity.
EUR/USD came under heavy bearish pressure on Thursday and erased a large portion of the gains it recorded in the first half of the week. Investors refrained from betting on a 25 basis points hike in European Central Bank (ECB) key rates in September following the Eurozone inflation readings, causing the Euro to lose interest. Early Friday, the pair stays quiet below 1.0850.
USD/CAD closed the first four days of the week in negative territory and touched its lowest level in two weeks at 1.3490 early Friday. The pair was last seen trading modestly higher on the day slightly above 1.3500. Canadian economy is forecast to post an annualized expansion of 1.2% in the second quarter.
GBP/USD turned south and returned below 1.2700 on Thursday. The pair stays on the back foot early Friday and trades near 1.2650.
USD/JPY stays relatively calm at around 145.50 early Friday. The data from Japan showed earlier in the day that Capital Spending rose 4.5% in the second quarter, falling short of the market expectation for an increase of 5.4%.
Despite the broad-based USD strength, Gold price declined only marginally on Thursday as US Treasury bond yields struggled to gain traction. In the European morning, XAU/USD consolidates its weekly gains at around $1,940.
US August Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises.
Bitcoin came under heavy bearish pressure and dropped to the $26,000 area, retracing its weekly uptrend. Ethereum lost more than 3% on Thursday and was last seen trading below $1,650.
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EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
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Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
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