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Dollar Softens as August jobs data in focus

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Equities

The SPX500 and Nasdaq settled lower for the third straight session, weighed down by the tech sector. Moreover, investors are evaluating the effects of the Turmoil in the emerging markets on the U.S. stock market. The tech-heavy Nasdaq Composite fell by 0.9% to 7922, the SPX500 tumbled by 0.4% to 2878, whereas the Dow Jones pared early losses to settle near the open level at 25995.

USD

The dollar index which measures the greenback against a basket of major currencies finished lower for the second consecutive day. DXY traded at a one-week low of 94.87 during the Asian session as investors positioned themselves ahead of the jobs report. The ADP National Employment report showed yesterday that the U.S. economy created 163 thousand non-farm jobs versus an expectation of 188 thousand. On the other hand, the ISM non-manufacturing PMI rose to 58.5 from 55.7 to confirm the positive momentum in the services sector. Market participants await the August non-farm payrolls, unemployment rate, and average hourly earnings. The EURUSD and GBPUSD are trading near today's high at $1.1644 and $1.2942.

CAD

The Canadian dollar bounced-off a seven-week low against the United States dollar on positive comments from the negotiators of a trade deal. The USDCAD fell to trade at a low 1.3113 during the Asian session. In addition to their focus on the outcome of trade talks, loonie traders will focus on the August jobs data from Canada.

Metals

Gold prices settled slightly higher for the second consecutive day. The gold ounce traded at a three-day high of $1207 during the day and ended at $1200. The bullion has been hovering near the $1200 psychological level for ten days. Today's jobs report could spark investors trading activity. On the other hand, the silver ounce retreated from a high of $14.30 to close lower at $14.13. The XAUXAG ratio logged its highest close in ten years of 84.81.

Oil

Oil prices ended lower for the third consecutive day after a choppy trading day. The Energy Information Administration reported a drop of 4.302 million barrels to 401.49 million barrels which helped WTI and Brent to pare the intraday losses. The West Texas Intermediate crude futures traded at a two-week low of $67.00 and settled off the lows at $67.84. The Brent futures reached a one-week low of $75.62 and closed at $76.57. The U.S. energy services firm Baker Hughes will report the U.S. oil rig count later today.

 

Major Economic Events

GMT Country Event Expectation Previous
09:00 EU GDP (YoY) (Q2) 2.2% 2.2%
09:00 EU GDP (QoQ) (Q2) 0.4% 0.4%
12:30 US Average Hourly Earnings (MoM) (Aug) 0.3% 0.3%
12:30 US Average Hourly Earnings (YoY) (YoY) (Aug) 2.7% 2.7%
12:30 US Nonfarm Payrolls (Aug) 191 157
12:30 US Unemployment Rate (Aug) 3.8% 3.9%
12:30 CA Unemployment Rate (Aug) 5.9% 5.8%
12:30 CA Employment Change (Aug) 5.1 54.1
14:00 CA Ivey PMI (Aug) 61.4 61.8
17:00 US U.S. Baker Hughes Oil Rig Count   862.000

 
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