Here is what you need to know on Friday, August 5:

The dollar weakened against its rivals amid falling US Treasury bond yields on Thursday but managed to regain its traction early Friday. Ahead of the all-important US July jobs report, the US Dollar Index posts modest daily gains near 106.00. The European docket will not be featuring any high-impact data releases and the market mood remains relatively upbeat with US stock index futures trading in positive territory. Meanwhile, the benchmark 10-year US Treasury bond yield moves sideways below 2.7%, allowing the greenback to stay resilient in the early European morning.

Nonfarm Payrolls Preview: High expectations set deal the dollar a blow, create buying opportunity.

On Thursday, the Bank of England (BOE) announced that it raised its policy rate by 50 basis points to 1.75% following its August policy meeting. In its revised projections, however, the BOE said that it expects the UK economy to tip into recession in the last quarter of the year. The gloomy economic outlook caused the British pound to suffer heavy losses and GBP/USD dropped to a daily low of 1.2065 before staging a rebound amid renewed dollar weakness in the second half of the day. At the time of press, the pair was moving sideways near 1.2150. 

BOE Analysis: Brutally honest Bailey blasts the pound, why further falls are likely.

EUR/USD gained more than 50 pips on Thursday but failed to preserve its bullish momentum. Nevertheless, the pair continues to trade above 1.0200. The data from Germany showed earlier in the day that Industrial production expanded by 0.4% in June but this reading had little to no impact on the shared currency's valuation.

Gold extended its rally to a fresh monthly high amid falling US Treasury bond yields and came within a touching distance of $1,800. XAU/USD seems to have gone into a consolidation phase near $1,790 while waiting for the next catalyst.

US July Nonfarm Payrolls Preview: Analyzing gold's reaction to NFP surprises.

USD/JPY edges higher and trades above 133.00 early Friday after having closed deep in negative territory on Thursday. The data from Japan revealed in the early Asian session that the Leading Economic Index declined to 100.6 in June from 101.2 in May.

USD/CAD failed to capitalize on the broad dollar weakness as falling crude oil prices weighed on the commodity-sensitive loonie. The barrel of West Texas Intermediate, which lost nearly 10% this week, was last seen rising 1.8% on the day at $89.30, making it difficult for the pair to stretch higher. Later in the day, Statistics Canada is forecast to report that the Unemployment Rate rose to 5% in July from 4.9% in June. 

Bitcoin closed the first four days of the week with small losses but recovered above $23,000 early Friday, rising nearly 3% on a daily basis. After having dipped below $1,600 on Thursday, Ethereum gained traction and climbed toward $1,700 on Friday.

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

GBP/USD defends 1.1900 after mixed UK Retail Sales

GBP/USD defends 1.1900 after mixed UK Retail Sales

GBP/USD is off the lows but remains vulnerable amid mixed UK Retail Sales and broad USD strength. The UK Retail Sales surprised positively, with a 0.3% rise MoM in July. On an annualized basis, UK consumer spending fell 3.4% vs. 3.3% expected. 

GBP/USD News

EUR/USD drops towards 1.0050 amid recession woes, hawkish Fed bets

EUR/USD drops towards 1.0050 amid recession woes, hawkish Fed bets

EUR/USD holds lower ground near the monthly bottom, approaching 1.0050 as the US dollar trades firmer amid a sluggish European morning. Fears of German recession, geopolitical concerns and hawkish Fedspeak weigh on the major currency pair.

EUR/USD News

Gold: Firmer DXY directs bears towards $1,730

Gold: Firmer DXY directs bears towards $1,730

Gold price takes offers to renew monthly low near $1,750 during early Friday morning in Europe. The bullion prices register the five-day downtrend as the US dollar bulls cheer recession woes, as well as firmer US data and hopes of the Fed’s aggression vis-à-vis rate hikes.

Gold News

AVAX price will give holders an opportunity to get out before another 20% crash

AVAX price will give holders an opportunity to get out before another 20% crash

AVAX price is in a tough spot as it approaches the end of its uptrend that has been ongoing for two months. While bearish as the altcoin looks, a minor relief rally or bounce could help investors cash out before another leg down. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures