What you need to know on Friday, August 6:
The dollar is mixed across the board, against safe-haven rivals and high-yield assets, and mostly lower against commodity currencies. Market mood recovered during the American afternoon, following news that the US Senate is in talks to finalize the infrastructure bill and begin discussing the $ 3.5 trillion budget afterward. Senate Republican Leader McConnell said Democrats should raise the debt ceiling on their own. The EUR / USD is trading around 1.1835.
GBP / USD has risen, trading at 1.3930, following the Bank of England’s monetary policy decision. As widely anticipated, the central bank kept its benchmark rate unchanged at 0.1%, and facility programs were also put on hold. Policymakers forecast that inflation could rise to 4% in the last quarter of the year, but added that it would be temporary. They indicated that “a modest tightening of monetary policy is likely to be necessary” over the next two years.
AUD / USD is trading around 0.7400 while USD / CAD hovers around the 1.2500 level, helped by the positive tone on Wall Street as indices rose with optimistic stimulus.
Gold was down to close to $ 1,804 a troy ounce, while crude oil prices recovered modestly, with WTI ending the day at $ 69.00 a barrel.
Focus shifts to the US Non-Farm Payrolls report. The US is expected to have added 870,000 new jobs in July, slightly above the previous 850,000. The unemployment rate is expected to have fallen to 5.7% from 5.9%, while the labor force participation rate remains stable at 61.6%.
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