Here is what you need to know on Friday, September 1:
The US Dollar holds steady following Wednesday's rally as investors move to the sidelines ahead of key data releases. August jobs report, which will include Nonfarm Payrolls and wage inflation figures, and the ISM's Manufacturing PMI survey will be featured in the US economic docket. Statistics Canada will also release second-quarter Gross Domestic Product growth data in the early American session.
The US data showed on Thursday that the Core Personal Consumption Expenditures (PCE) Price Index rose 4.2% on a yearly basis in July, compared to 4.1% in June. Additionally, the weekly Initial Jobless Claims declined to 228,000 and came in better than the market expectation of 235,000. Following these data releases, the US Dollar Index (DXY) extended its daily recovery and gained nearly 0.5% on Thursday, snapping a three-day losing streak. Early Friday, DXY consolidates its gains above 103.50. In the meantime, the 10-year US Treasury bond yield continues to move sideways at around 4.1% and US stock index futures trade flat.
Nonfarm Payrolls Forecast: US labor market expected to show further signs of cooling in August.
US Dollar price today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.03% | 0.09% | 0.05% | 0.47% | 0.03% | 0.40% | -0.11% | |
| EUR | 0.04% | 0.13% | 0.07% | 0.49% | 0.04% | 0.42% | -0.06% | |
| GBP | -0.09% | -0.12% | -0.04% | 0.40% | -0.06% | 0.32% | -0.20% | |
| CAD | -0.05% | -0.08% | 0.05% | 0.43% | -0.03% | 0.35% | -0.15% | |
| AUD | -0.47% | -0.51% | -0.37% | -0.43% | -0.46% | -0.08% | -0.58% | |
| JPY | -0.03% | -0.03% | 0.09% | 0.03% | 0.45% | 0.40% | -0.11% | |
| NZD | -0.40% | -0.42% | -0.29% | -0.35% | 0.07% | -0.38% | -0.49% | |
| CHF | 0.11% | 0.06% | 0.20% | 0.14% | 0.57% | 0.11% | 0.49% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
In the Asian session, the data from China revealed that the Caixin Manufacturing PMI rose to 51 in August from 49.2, highlighting an expansion in the manufacturing sector's business activity.
EUR/USD came under heavy bearish pressure on Thursday and erased a large portion of the gains it recorded in the first half of the week. Investors refrained from betting on a 25 basis points hike in European Central Bank (ECB) key rates in September following the Eurozone inflation readings, causing the Euro to lose interest. Early Friday, the pair stays quiet below 1.0850.
USD/CAD closed the first four days of the week in negative territory and touched its lowest level in two weeks at 1.3490 early Friday. The pair was last seen trading modestly higher on the day slightly above 1.3500. Canadian economy is forecast to post an annualized expansion of 1.2% in the second quarter.
GBP/USD turned south and returned below 1.2700 on Thursday. The pair stays on the back foot early Friday and trades near 1.2650.
USD/JPY stays relatively calm at around 145.50 early Friday. The data from Japan showed earlier in the day that Capital Spending rose 4.5% in the second quarter, falling short of the market expectation for an increase of 5.4%.
Despite the broad-based USD strength, Gold price declined only marginally on Thursday as US Treasury bond yields struggled to gain traction. In the European morning, XAU/USD consolidates its weekly gains at around $1,940.
US August Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises.
Bitcoin came under heavy bearish pressure and dropped to the $26,000 area, retracing its weekly uptrend. Ethereum lost more than 3% on Thursday and was last seen trading below $1,650.
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.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.