The US dollar is on the back foot after critical data missed estimates, pushing Nonfarm Payrolls expectations down. Oil holds onto the high ground after the OPEC+ meeting and all major cryptocurrencies climb. Speeches from Fed members, S jobless claims, and covid data are eyed.
Weak US figures ADP’s labor report badly disappointed by showing a gain of only 374,000 private-sector jobs in August. While the ISM Manufacturing Purchasing Managers’ Index’s headlines beat estimates with 59.9 points, its Employment component contracted.
Dollar depressed: The publications caused concerns about Friday’s all-important Nonfarm Payrolls report, which is critical to the Federal Reserve’s decision on tapering its bond-buys. The greenback lost ground across the board.
EUR/USD rose toward 1.1850, also benefiting from speculation that the European Central Bank could withdraw stimulus following high European inflation figures. Eurozone PMIs beat estimates.
GBP/USD advanced toward 1.38 but struggled to break higher. COVID-19 cases remain elevated in the UK, although they might be skewed by Britain’s bank holiday.
USD/CAD is trading at around 1.26 following the short OPEC+ meeting in which members agreed to continue the gradual increase in output. While production is set to rise, US inventories have seen a substantial drawdown, keeping petrol prices bid.
US weekly jobless claims for the week ending on August 27 are set to edge down from the previous week’y 352,000 level. While the data is for after the week in which Nonfarm Payrolls surveys were held, markets are nervous and could respond.
Fedspeak: Federal Reserve member Raphael Bostic expressed concerns about the expiry of federal unemployment benefits and their impact on the economy. Bostic and his colleague Mary Daly will be speaking later in the day.
US Stock Markets investors are also following flooding in New York City, remnants of hurricane Ida and US COVID-19 cases, which continue increasing despite a slowdown. Globally, the disease is retreating.
Cryptocurrencies have gained ground, with Bitcoin nearing $50,000 and Ada Cardano hitting $3. Ethereum, which was the first of the top digital assets to move this time – buoyued by the NFT craze – is consolidating its gains above $3,700.
SOURCES: FXSTREET and LOTUS ACADEMY
