Forex Today: Gold up, dollar down amid stalled fiscal talks, vaccine hopes, ahead of jobless claims


Here is what you need to know on Thursday, August 6:

The US dollar remains on the back foot while gold shines, following experienced on Thursday, partially in response to hints of weak Non-Farm Payrolls. US jobless are eyed on Thursday. Hopes of a coronavirus vaccine boost markets while ongoing fiscal talks in Washington are eyed. 

Worrying data: ADP's private-sector jobs report has shown an increase of only 167,000 jobs in July against 1.5 million expected. While the ISM Non-Manufacturing Purchasing Managers' Index beat estimates with 58.1 points, the employment component's fall implies weak hiring in America's services sector. 

See:US Data Analysis: Big jobs number? Negative NFP looks more likely, trends could extend in gold, dollar

Weekly jobless claims do not refer to the week when Non-Farm Payrolls were conducted, but are still watched as a snapshot of the labor market. The economic calendar is pointing to a fall in both initial and continuing claims.

See US Initial Jobless Claims: Can claims and payrolls rise at the same time?

Talks between Republicans and Democrats on the next fiscal relief package continue in Washington and after optimistic tones, reports suggest the sides are far apart. According to Republican Senate leader Mitch McConnell, a deal depends on Democratic House Speaker Nancy Pelosi and President Donald Trump.

The White House has suggested Trump is considering an executive order to break the deadlock. Markets remain optimistic that both sides will agree to a large stimulus deal, including maintaining most of the critical federal unemployment benefits. 

Loretta Mester, President of the Federal Reserve Bank of Cleveland said that uncertainty about jobless support is a risk. Dallas Fed President Robert Kaplan speaks later in the day.

The S&P 500 Index has continued inching its way toward the all-time highs, supported by hopes for a vaccine. Anthony Fauci, America's top infectious disease expert, said it is likely that the US will have tens of millions of doses by the end of the year and a billion by the end of 2021. 

Novavax has been the latest to report promising results in developing COVID-19 immunization. US coronavirus cases and deaths are gradually dropping from the recent highs.

Gold extended its gains on Wednesday, hitting a new all-time high at $2,055.65. The precious metal is benefiting from fiscal and monetary stimulus. Silver has topped $27. In addition to the yellow metal's drivers, XAG/USD benefits from silver's usage in environmental technologies. 

The Bank of England has left interest rates unchanged as expected and released a relatively optimistic quarterly report. That includes an upgrade economic forecasts, noting robust high-frequency spending indicators, and also refraining from backing negative rates. GBP/USD jumped toward 1.32, hitting the highest since March. 

See BOE Quick Analysis: Three pound-positive on Super Thursday open door to new highs

Sino-American tensions remain elevated after US Secretary of State Mike Pompeo urged caution when traveling to China and laid out ideas for a "clean network," referring to tech dealings with China. Microsoft continues talks with ByteDance to acquire TikTok, a popular Chinese social network.

EUR/USD is trading around 1.19 after nearing that round level on Wednesday. Coronavirus cases are rising in Spain, France, and other countries, but remain far below the peaks.

AUD/USD is at around 0.72. Australia's Prime Minister Scott Morrison has said that COVID-19 will cost the nation at least A$7 billion. 

Cryptocurrencies have been consolidating after making a movie to the upside, with Bitcoin trading around $11,600 and Ethereum closer to $400. 

Looking ahead: US Non-Farm Payrolls Preview: A dual-track labor market or imperfections in the data?

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds above 1.17, shrugging off upbeat US consumer confidence

EUR/USD is trading above 1.17, holding its gains despite upbeat US data. The CB Consumer Confidence jumped to 101.8 points, beating estimates. Fed speakers are awaited and the presidential debate is eyed.

EUR/USD News

GBP/USD retreats from highs amid Brexit, coronavirus uncertainty

GBP/USD is retreating from the highs close to 1.29 as concerns about Brexit talks and rising UK coronavirus cases are taking their toll on the pound. 

GBP/USD News

XAU/USD holds steady near multi-day tops, around $1890 region

Gold built on the previous day's goodish bounce from 100-day SMA and edged higher through the first half of the trading action on Tuesday. The overnight sustained move beyond 100-hour SMA was seen as a key trigger for bullish traders and pushed the commodity to multi-day tops.

Gold News

Presidential Debate Preview: Trump may lose due to his own buildup, market implications

The first presidential debate is set to shake up the elections campaign.  President Trump's playing down of challenger Biden's skills may turn into a double-edged sword. Markets will move on implications for a new fiscal relief package. 

Read more

WTI drops to fresh lows near $39.70 ahead of API

Prices of the American benchmark for the sweet light crude oil broke below the $40.00 mark per barrel and slipped back to the $39.70 region on Tuesday.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures