Forex Today: US Nonfarm Payrolls will steal the show

Pablo Piovano FXStreet

The Greenback showed signs of life and charted a meaningful rebound on Wednesday, leaving behind the area of multi-year lows vs. its peers, despite remaining under pressure ahead of the release of crucial US labour market data on Thursday and amid steady concerns on the trade front.

Here's what to watch on Thursday, July 3:

The US Dollar Index (DXY) retested the area above the 97.00 hurdle, helped by some profit-taking mood in the risk complex and rising US yields across the curve. The release of Nonfarm Payrolls will take centre stage, seconded by the Unemployment Rate, Factory Orders, the final S&P Global Services PMI, Balance of Trade results, weekly Initial Jobless Claims, Factory Orders, and the ISM Services PMI.

EUR/USD faced some fresh selling pressure and slipped back below the 1.1800 support. The final HCOB Services PMI in both Germany and the eurozone are due alongside the ECB’s Accounts.

GBP/USD collapsed to multi-day lows in the sub-1.3600 zone on the back of increasing concerns surrounding the UK political scenario. The final S&P Global Services PMI will follow the BoE's DMP Survey and Credit Conditions Survey.

USD/JPY left behind two daily drops in a row and advanced to the area past 144.00, briefly flirting with its interim 555-day SMA. The usual weekly Foreign Bond Investment prints are due.

AUD/USD came under pressure following Tuesday’s yearly highs near the 0.6600 barrier, receding modestly to the .6540 zone on Wednesday. Next on tap in Oz will be the final S&P Global Services PMI prior to Balance of Trade results.

WTI prices added to Tuesday’s gains and rose past the $66.00 mark per barrel despite a larger-than-unexpected build of US crude oil inventories, as reported by the EIA.

Gold rose modestly, although its gains remained limited by the $3,350 zone per troy ounce. Silver prices advanced markedly north of the $36.00 mark per ounce, maintaining the weekly erratic performance in place.

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.

EUR/USD meets initial support around 1.1800

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GBP/USD bounces off lows, retargets 1.3550

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