Forex Today: Dollar weak ahead of first-tier events

Valeria Bednarik FXStreet

What you need to know on Tuesday, August 3:

Market players were optimistic at the beginning of the day, with the dollar easing against its major rivals. The sentiment took a turn for the worse during American trading hours, amid signs of slowing economic progress in the US. The official ISM index contracted from 60.6 to 59.5 in July, a sign of slowing economic progress.

Wall Street turned south while government bond yields plunged, amid renewed demand for safety. The JPY and Gold surged against the dollar.

Major pairs held within familiar levels as investors await first-tier data scheduled for later in the week. In the US, employment is taking centre stage with the Nonfarm Payroll report.

EUR/USD hovers around 1.1860 while GBP/USD stands below 1.3900. The AUD posted modest gains vs the greenback, but the CAD fell amid plummeting oil prices.

Gold settled at $1,813 a troy ounce while WTI ended the day at $71.45 a barrel, hit by concerns related to a jump in the OPEC output and slowing growth in China.

The Reserve Bank of Australia will announce its monetary policy decision on Tuesday.

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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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