Forex Today: Dollar’s demand mixed ahead of Nonfarm Payrolls' day
|Here is what you need to know on Friday, September 4:
The greenback remained strong throughout the first half of the day, although dollar’s demand receded in the last trading session of the day. Despite generally encouraging US employment-related data, the greenback ended the day mixed, as Wall Street led the way at the end of the day.
After the S&P and the Nasdaq reached record highs on Wednesday, US indexes collapsed, led by sharp losses in the tech sector. The Nasdaq Composite lost over 5%, its worst performance in months. The dismal behavior was partially backed by the absence of progress in the US Congress on a fiscal stimulus package, with House Speaker Nancy Pelosi reporting “serious differences” persists.
The US Center for Disease Control and Prevention surprised media by telling states to prepare for a coronavirus vaccine to be ready to distribute by early November. Speculation mounts about being a political movement ahead of the presidential election, and health experts warned against the early distribution of a vaccine.
The EUR/USD pair got to recover some ground by the end of the day, surging towards 1.1870, but ending the day pretty much unchanged, as bulls remain cautious following ECB’s virtual cap.
The GBP/USD pair lost the 1.3300 threshold, as the never ending Brexit-drama continues, with no signs of progress in trade talks and the clock running.
Commodity-linked currencies suffered the most amid equities collapse. AUD/USD and USD/CAD trade at weekly lows.
Gold posted a moderated decline, ending the day at $1,932 a troy ounce. WTI flirted with $40.00 a barrel, but buyers defended the level. It ended the day little changed at $41.30.
The focus now shifts to the US and the NFP report, after the Fed announced a twist to its monetary policy approach las week.
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