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Forex Today: Dollar Rally Loses Ahead of August Jobs Report and PMI Data

This is what you need to know to trade today friday september 1:

The US dollar is stable after the rally on Wednesday, as investors remain on the sidelines awaiting the release of key data. On the US economic agenda stand out the employment report for augustwhich will include non-farm payrolls and wage inflation figures, and the survey of the ISM Manufacturing PMI. Statistics Canada will also publish growth data for the Gross Domestic Product of the second quarter early in the American session.

In United States, the core Personal Consumption Expenditure (PCE) Price Index increased by 4.2% year-on-year in July, compared to 4.1% in June. In addition, initial weekly claims for unemployment benefits fell to 228,000 and improved market expectations, which placed them at 235,000. Following the release of this data, the DXY Dollar Index extended its rally and gained nearly 0.5% on Thursday, snapping a three-day losing streak. Early Friday, the DXY Index consolidates its gains above 103.50. Meanwhile, the 10-year US Treasury yield continues to move sideways around 4.1% and US stock index futures are trading flat.

See: Nonfarm Payrolls Preview: Four scenarios for a jobs report that will test the resilience of the US economy

Dollar price today

The following table shows the percentage change of the US dollar (USD) against the main currencies.

USD -0.03% 0.09% 0.05% 0.47% 0.03% 0.40% -0.11%
USD 0.04% 0.13% 0.07% 0.49% 0.04% 0.42% -0.06%
GBP -0.09% -0.12% -0.04% 0.40% -0.06% 0.32% -0.20%
CAD -0.05% -0.08% 0.05% 0.43% -0.03% 0.35% -0.15%
AUD -0.47% -0.51% -0.37% -0.43% -0.46% -0.08% -0.58%
JPY -0.03% -0.03% 0.09% 0.03% 0.45% 0.40% -0.11%
USD -0.40% -0.42% -0.29% -0.35% 0.07% -0.38% -0.49%
CHF 0.11% 0.06% 0.20% 0.14% 0.57% 0.11% 0.49%

The heat map shows the percentage changes of major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the Euro in the left column and move across the horizontal line to the Japanese Yen, the percentage change in the box will represent EUR (base)/JPY (quote).

During the Asian session, data from China revealed that the Caixin manufacturing PMI rose to 51 in August from 49.2, highlighting a expansion of business activity in the manufacturing sector.

He EUR/USD came under strong bearish pressure on Thursday, erasing much of the gains it had posted in the first half of the week. Investors refrained from betting on a 25 basis point hike in key European Central Bank (ECB) interest rates in September following eurozone inflation data, which made the Euro lose interest. As of early Friday, the pair is quiet below 1.0850.

He USD/CAD it closed the first four days of the week in negative territory and touched its lowest level in two weeks at 1.3490 early on Friday. The pair is now trading slightly higher, above 1.3500. The Canadian economy is forecast to register an annualized expansion of 1.2% in the second trimester.

He GBP/USD turned lower and back below 1.2700 on Thursday. The pair remains lower early Friday and is trading near 1.2650.

He USD/JPY it is relatively quiet around 145.50 early Friday. Data from Japan have shown earlier in the day that the Capital Spending increased 4.5% in the second quarterfalling below market expectations of an increase of 5.4%.

Despite the general strength of the Dollar, the price of the Gold it fell only marginally on Thursday as US Treasury yields struggled to gain traction. In the European morning, the XAU/USD consolidates its weekly gains around $1,940.

See: August US Non-Farm Payrolls Forecast: Analysis of Gold Price Reaction to NFP Surprises

He Bitcoin came under strong bearish pressure and fell to the $26,000 area, reversing its weekly uptrend. He ethereum it lost more than 3% on Thursday and is now trading below $1,650.

Source: Fx Street

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