This is what you need to know to trade today friday september 2:
Buoyed by encouraging macroeconomic data releases in the US, the Dollar Index (DXY) reached its highest level in almost two decades on Thursday, around 110.00. With investors stepping back in anticipation of the US August jobs report, DXY consolidates gains near 109.50. Reflecting markets’ caution, US stock index futures are trading mixed in the early European session and the 10-year US Treasury yield remains in negative territory below 3.25%.
The US Department of Labor announced Thursday that weekly initial jobless claims fell to 232,000, versus the market expectation of 248,000. Additionally, the ISM Manufacturing PMI survey revealed that business activity in the manufacturing sector continued to expand at a healthy pace in August. More importantly, the employment component rose to 54.2 in August from 49.9 in July, reviving optimism ahead of an upbeat labor market report on Friday.
The US Bureau of Labor Statistics is expected to report an increase of 300,000 Non-Farm Payrolls (NFP) in August, following an impressive 528,000 growth in July. Annual wage inflation is forecast to rise to 5.3% and the labor force participation rate is forecast to remain unchanged at 62.1%.
NFP Forecast: Five reasons to expect a beneficial dollar release
On Thursday, the pair EUR/USD it approached 0.9900, but managed to bounce back early on Friday. The pair was last seen trading in positive territory, slightly below parity.
The GBP/USD it hit its weakest level in over two years at 1.1500 on Thursday before trading above 1.1550 early on Friday.
The Prayed It fell below $1,700 on Thursday for the first time since late July, but broke above that level on Friday morning in Europe.
US Non-Farm Payrolls Preview: Analyzing Gold’s Reaction to NFP Surprises
Driven by rising US yields and broad dollar strength, the USD/JPY reached its highest level in 24 years above 140.00. Japanese Finance Minister Shunichi Suzuki said on Friday that he would not comment on every daily move in the currency markets, but reiterated that action would be taken if necessary.
The Bitcoin remains relatively quiet on the last trading day of the week and is trading up and down in a tight channel slightly above $20,000. The ethereum closed the second day in a row in positive territory and was last seen posting small daily gains around $1,600.
Source: Fx Street
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