Forex Today: Dollar firmer ahead of NFP report

Valeria Bednarik FXStreet

What you need to know on Friday, August 6:

The dollar is mixed across the board, up against safe-haven rivals and high-yielding assets, and mostly down against commodity-linked currencies. The market mood picked up during the American afternoon, following news that the US Senate is in talks to finish the infrastructure bill and kick-start discussing the $ 3.5 trillion budget afterwards. Senate Republican Leader McConnell said that Democrats should raise the debt ceiling on their own. EUR/USD trades at around 1.1835.

GBP/USD is up, trading in the 1.3930, after the Bank of England Monetary Policy decision. As widely anticipated, the central bank left its benchmark rate unchanged at 0.1%, and facilities programs were also on hold. Policymakers forecast inflation could rise to 4% in the last quarter of the year but added it would prove temporary. They indicated that “some modest tightening of monetary policy is likely to be necessary” over the next couple of years.

AUD/USD trades around 0.7400 while USD/CAD hovers around the 1.2500 level, helped by the positive tone of Wall Street, as indexes surged on stimulus optimism.

Gold edged lower and settled at $1,804 a troy ounce, while crude oil prices recovered modestly, with WTI ending the day at $69.00 a barrel.

The focus shifts to the US Nonfarm Payrolls report. The US is expected to have added 870K new jobs in July, slightly above the previous 850K. The Unemployment rate is expected to have retreated to 5.7% from 5.9%, while the Labor Force Participation Rate is seen steady at 61.6%.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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