untitled design

Forex Today: Risk Sentiment Improves, But Markets Remain Subdued

This is what you need to know to trade today monday september 4:

There is a positive shift in risk sentiment at the start of the week, as reflected in the impressive gains posted on Monday in the major Asian stock indices. The European economic agenda will include data from Sentix Investor Confidence corresponding to September, and the president of the European Central Bank, christine lagarde, will deliver a speech first thing in the American session. However, activity is likely to remain subdued in the second half of the day as the US and Canadian markets will be closed for the Labor Day holiday.

Late in the American session on Friday, the dollar strengthened against its main rivals. After the sharp fall recorded in the first half of the week, the DXY Dollar Index closed the week virtually unchanged above 104.00. In the European morning on Monday, the DXY index is trading slightly lower.

US non-farm payrolls increased by 187,000 in August, the US Bureau of Labor Statistics announced on Friday. Although this reading beat market expectations of 170,000, the downward revision of the July figure (from 187,000 to 157,000), made it difficult for the dollar to Gain strength against your rivals as an immediate reaction. The report showed that the unemployment rate rose from 3.5% to 3.8%while the labor force participation rate improved from 62.6% to 62.8%.

Price of the Dollar in the last 7 days

The following table shows the percentage change of the US Dollar (USD) against the listed currencies in the last 7 days.

USD 0.05% -0.21% -0.08% -0.90% -0.25% -0.76% -0.04%
USD -0.06% -0.27% -0.12% -0.96% -0.31% -0.82% -0.12%
GBP 0.21% 0.26% 0.14% -0.69% -0.04% -0.57% 0.14%
CAD 0.06% 0.09% -0.15% -0.84% -0.19% -0.72% 0.00%
AUD 0.90% 0.94% 0.69% 0.83% 0.64% 0.12% 0.84%
JPY 0.25% 0.32% 0.06% 0.19% -0.64% -0.50% 0.19%
USD 0.76% 0.81% 0.55% 0.68% -0.14% 0.51% 0.70%
CHF 0.07% 0.12% -0.15% 0.00% -0.85% -0.19% -0.72%

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).

Following the People’s Bank of China’s decision to lower the FX reserve requirement ratio to boost dollar liquidity heading into the weekend, news that Chinese property developer Country Garden had obtained approval from its creditors to extend payments on a private bond helped improve market sentiment early Monday. Hong Kong’s Hang Seng gained more than 2% on the first trading day of the week and the Shanghai Composite rose almost 1.5%.

He EUR/USD it lost more than 50 pips on Friday and closed the week in negative territory below 1.0800. The pair holds early on Monday and recovers towards 1.0800. Earlier, data from Germany showed the country’s trade surplus narrowed to 15.9 billion euros in July from 18.7 billion in June.

He GBP/USD posted strong gains in the first half of the week but wiped them all out in a two-day slide before the weekend. The pair is holding on to modest daily gains above 1.2600 by European morning Monday.

He AUD/USD benefited from improving risk appetite and started to rally towards 0.6500 on Monday. During the Asian session on Tuesday, the Reserve Bank of Australia (RBA) will announce its monetary policy decision. The RBA is expected to keep its interest rate at 4.1%.

The price of Gold it struggled to maintain its bullish momentum on Friday, but ended up posting gains for the second week in a row. XAU/USD is stable above $1,940 on Monday.

He USD/JPY rallied on Friday on rising US yields and has stabilized above 146.00 at the start of the week.

Source: Fx Street

You may also like

Most popular