Forex Today: Market players anticipate a tepid NFP

Valeria Bednarik FXStreet

What you need to know on Friday, September 3:

The greenback remained under selling pressure as unimpressive US employment-related data anticipates a weak Nonfarm Payroll report, pushing away the announcement of tapering in the US. The country is expected to have added 750K new jobs in August, while the Unemployment Rate is foreseen at 5.2%, better than the previous 5.4%.

Market participants are anticipating a disappointing US employment report, which means that upbeat figures may shock investors and trigger a substantial dollar rally, as investors will return to price-in soon to come tapering in the US.

Ahead of the event, the dollar will likely remain weak, although range-bound trading is expected through the Asian session.

EUR/USD trades at fresh one-month highs around 1.1870, while GBP/USD settled around 1.3830, as Brexit shortages undermine demand for Sterling.

Commodity-lined currencies were up. AUD/USD trades around 0.7400, while USD/CAD plunged to 1.2550, helped by firmer oil prices. WTI jumped above $70 a barrel amid rising demand hopes, after the EIA report indicated so. The black gold settled at $69.75 a barrel.

Coronavirus: the Delta variant keeps storming the UK, which reported over 38K new cases in the last 24 hours, and 178 new deaths. In the US, the number of hospitalizations fell on Wednesday for the first time in months, but the country reported 24,630 new contagions.

US August Nonfarm Payrolls Preview: Analyzing major pairs' reaction to NFP surprises

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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.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.