Here is what you need to know on Thursday, September 2:
The US dollar is on the back foot after critical data missed estimates, pushing Nonfarm Payrolls expectations down. Oil holds onto high ground after the OPEC+ meeting and all major cryptocurrencies climb. Speeches from Fed members, S jobless claims and covid data are eyed.
Weak US figures ADP's labor report badly disappointed by showing a gain of only 374,000 private-sector jobs in August. While the ISM Manufacturing Purchasing Managers' Index's headlines beat estimates with 59.9 points, its Employment component contracted.
Dollar depressed: The publications caused concerns about Friday's all-important Nonfarm Payrolls report, which is critical to the Federal Reserve's decision on tapering its bond-buys. The greenback lost ground across the board.
EUR/USD rose toward 1.1850, also benefiting from speculation that the European Central Bank could withdraw stimulus following high European inflation figures. Eurozone PMIs beat estimates.
GBP/USD advanced toward 1.38 but struggled to break higher. COVID-19 cases remain elevated in the UK, although they might be skewed by Britain's bank holiday.
USD/CAD is trading at around 1.26 following the short OPEC+ meeting in which members agreed to continue the gradual increase in output. While production is set to rise, US inventories have seen a substantial drawdown, keeping petrol prices bid.
US weekly jobless claims for the week ending on August 27 are set to edge down from the previous week'y 352,000 level. While the data is for after the week in which Nonfarm Payrolls surveys were held, markets are nervous and could respond.
Fedspeak: Federal Reserve member Raphael Bostic expressed concerns about the expiry of federal unemployment benefits and their impact on the economy. Bostic and his colleague Mary Daly will be speaking later in the day.
US investors are also following flooding in New York City, remnants of hurricane Ida and US COVID-19 cases, which continue increasing despite a slowdown. Globally, the disease is retreating.
Cryptocurrencies have gained ground, with Bitcoin nearing $50,000 and Ada Cardano hitting $3. Ethereum, which was the first of the top digital assets to move this time – buoyued by the NFT craze – is consolidating its gains above $3,700.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.