Forex Today: US Nonfarm Payrolls will grab all the attention

Pablo Piovano FXStreet

The US Dollar (USD) managed to regain some balance and clock decent gains, always meandering in the low 98.00s amid investors’ rising expectations ahead of the release of the crucial NFP report.

Here's what to watch on Friday, September 5:

The US Dollar Index (DXY) regained fresh upside impulse and partially reversed Wednesday’s downtick in a context of extra weakness in US yields across the curve. The Nonfarm Payrolls will be the salient event on September 5, followed by the Unemployment Rate. In addition, the Fed’s Goolsbee is due to speak.

EUR/USD maintained its consolidative phase in place around 1.1650 ahead of the release of key US data. Germany’s Factory Orders, another revision of the Q2 GDP Growth Rate in the euro area, and the final EMU’s Q2 Employment Change will wrap up the calendar.

GBP/USD alternated gains with losses in a tight range near the 1.3450-1.3440 zone against the backdrop of a decent recovery in the Greenback. Retail Sales will take centre stage along with the Halifax House Price Index.

USD/JPY resumed its weekly uptrend, reclaiming the 148.00 hurdle and beyond amid decent gains in the US Dollar. Household Spending is next on tap in Japan, followed by Average Cash Earnings, and the preliminary Coincident and Leading Economic Indexes.

AUD/USD came under fresh downside pressure, faltering just ahead of the 0.6500 region. Next on tap on the Australian docket will be the Balance of Trade results and Household Spending figures.

Prices of the American WTI receded further, revisiting two-week lows in the area below the $63.00 mark per barrel as traders continued to assess the likelihood of output hikes by the OPEC+.

Gold halted its multi-day positive streak, giving away some gains following Wednesday’s all-time tops near the $3,580 mark per troy ounce. The rally in Silver prices also took a breather after rising to their highest level since the summer of 2011 well past the $41.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD ranges below 1.3450 amid US-Iran uncertainty, ahead of US data

GBP/USD keeps its range below 1.3450 in the European session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar, while undermining the risk-sensitive British Pound. All eyes remain on the US JOLTS data and Mideast headlines.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Wednesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold consolidates above $4,050 amid Fed hike bets and Iran uncertainty

Gold seesaws between tepid gains and minor losses during the Asian session as traders seem hesitant and opt to wait for further developments surrounding the Middle East crisis. The US Dollar struggles to build on the previous day's solid bounce from the lowest level since Mid-June and acts as a tailwind for the bullion. However, the uncertainty over US-Iran peace talks helps limit the downside for the buck.

Ripple and Stellar steady as derivatives data points to easing downside pressure

Ripple and Stellar show mixed price action, with XRP holding above the key $1 support zone while XLM faces rejection at $0.173. Meanwhile, improving derivatives metrics alongside fading bearish momentum suggest that the downside pressure may be easing for both altcoins. Derivatives data shows mild bullish sentiment among traders.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.