Forex Today: Dollar keeps weakening ahead of NFP

FXStreet Team FXStreet

Here is what you need to know on Friday, August 7:

The dollar remained under pressure, with high-yielding currencies extending their weekly advances to fresh highs. There was no particular reason behind the decline, but the lack of progress related to an aid package.

US President Trump tweeted: “I’ve notified my staff to continue working on an executive order with respect to the payroll tax cut, eviction protections, unemployment extensions and student loan repayment options." US Republican Senator Shelby said that the two parties are still far apart on a deal.

The Bank of England had a monetary policy meeting and left the current rate unchanged at 0.1% in a unanimous decision. Also, the growth forecast has suffered an upward revision, with the economy seen contracting this year by 9.5%, against a previous estimate of -14%. BOE’s Governor Bailey offered an optimistic speech, remarking that, while negative rates are part of the toolbox, they are not thinking on using them, but instead, suggested that they can do more QE or use new forms of forward guidance.

Gold soared to a record high of $2,070.00 a troy ounce, while crude oil prices hold on to familiar levels, but off their recent highs.

Focus is now on the US employment report and any possible agreement between Democrats and Republicans. If Congress agrees on an aid package and the NFP beats, the dollar could recover nicely.

Cryptocurrency Market News: $1.2 billion in Bitcoin was withdrawn out of exchanges in the past week

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