This is what you need to know to trade today Wednesday 1 September:
Stock markets are bullish and the dollar is mixed as a new month begins. Commodity currencies stand out with gains ahead of the OPEC + meeting and the euro remains higher amid optimistic comments from the ECB. Employment figures from ADP and the US Manufacturing ISM will serve as clues to Non-Farm Payrolls today.
New month, same rally: US stock markets ended August with a minor drop, but close to all-time highs. Investors remain optimistic about the outlook for the world’s largest economy despite the Conference Board’s drop in consumer confidence to 113.8 points, worse than expected.
Monetary support: The pessimistic statements of Federal Reserve Chairman Jerome Powell on Friday – in which he refrained from hinting at a tapering – continue to support the market and weigh on the dollar. The US housing market remains resilient with an annual increase of 19.1%, according to the Case Shiller index.
Bond purchase reduction in Europe? European Central Bank members Klaas Knot and Robert Holzmann indicated that they would support reducing the institution’s emergency bond purchase plan. Both spoke after preliminary inflation figures beat estimates with 3% in the main figure and 1.6% in the underlying. EUR / USD is trading around 1.18 and the final manufacturing PMI indices are in the spotlight.
The members of OPEC + They meet this Wednesday and will probably again extend the gradual return of production to normal, moderating the reductions. WTI crude is trading around $ 59, away from the highs seen in August but above the levels seen earlier this year. USD / CAD is trading around 1.26, with the Canadian dollar finding its rhythm after Canadian quarterly growth disappointed with -1.1% annualized in the second quarter.
Australian growth: AUD / USD stands out trading above 0.73 after reporting 0.7% growth in the second quarter of 2021. Investors appear to be ignoring Caixin’s disappointing Chinese manufacturing PMI, which fell to 49.2 points, contracting.
Clues to the NFP: The ADP private sector jobs report is projected to show an increase of 613,000 jobs in August. The post serves as a clue to Friday’s official NFP. Later in the day, the ISM Manufacturing PMI is another clue, and it could have a large impact, as the Services PMI will be released after Non-Farm Payrolls.
Watch:
ISM Manufacturing PMI Preview: Why It Could Be Trigger For A Big Dollar Recovery
The oro it has clung to its gains, trading above $ 1,810 amid optimistic market mood and prospects for further bond buying by the Fed.
cryptocurrencies: Ethereum has been standing out with substantial gains, reaching $ 3,500. Bitcoin is stable at around $ 47,000 and Ada is changing hands at around $ 2.80.
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