Forex Today: US Nonfarm Payrolls take centre stage

The US Dollar (USD) has added to Wednesday’s pullback, receding to multi-day lows and breaching below its key 200-day SMA. The marked retracement has almost exclusively followed rising market chatter over an imminent rate hike by the BoJ, relegating persistent geopolitical concerns and caution ahead of NFP data to the back burner.

Here is what you need to know on Friday, September 4:

The US Dollar Index (DXY) has built on its previous day’s losses and broken below the 99.00 support level, leaving behind its significant 200-day SMA at the same time. The Nonfarm Payrolls will be the undisputed event to watch at the end of the week, seconded by the Unemployment Rate and wage inflation data.

EUR/USD has traded with marked gains, surpassing the 1.1600 mark to hit four-day highs, always on the back of the marked weakness hurting the buck. Factory Orders in Germany are due in the first turn, seconded by the S&P Global Construction PMI in both Germany and the euro bloc and finally we will get Retail Sales data in the Euroland.

GBP/USD has managed to reclaim the 1.3550 region, reaching two-day highs and setting aside two consecutive days of losses. The S&P Global Construction PMI will be released alongside the BoE’s Decision Maker Panel (DMP) survey.

USD/JPY has collapsed to levels last seen in early August near 155.00 on the back of rising bets of a BoJ rate hike at its next gathering (what about FX intervention?). Household Spending figures will close the Japanese docket, followed by the advanced Coincident and Leading Economic indexes.

AUD/USD has added to Wednesday’s advance, marginally exceeding the key 0.7200 hurdle to challenge multi-week tops amid the increasing downward trend in the US Dollar. The next data release on the Australian calendar will be the Consumer Confidence index tracked by Westpac and housing data, all due on September 8.

Another day, another advance in WTI prices. Indeed, the commodity surpassed the $93.00 mark per barrel for the first time since late July, always underpinned by escalating tensions on the US-Iran-Hormuz front and the marked sell-off in the Greenback.

Gold has added to Wednesday’s recovery, breaking above the key $4,500 mark per troy ounce on the back of the strong retracement in the US Dollar. The yellow metal’s extra bounce has also followed declining US Treasury yields across the curve and continuous jitters in the Middle East.