News

Dollar Holds Steady ahead of Jobs Data

Dollar

The dollar index which measures the greenback against a basket of major currencies held steady near 93 ahead of key jobs data. Market participants are looking forward to the figures to grasp an insight into the labor market recovery and whether it was affected by the virus spread in July. Especially after the ADP nonfarm employment change, and ISM non-manufacturing employment component disappointed negatively. On the other hand, the Initial Jobless Claims came in at 1186, the lowest reading since March. The EURUSD drifted lower to $1.1819, the GBPUSD eased to $1.3097, and the USDJPY hovered above 105.50.

Equities

Major US stock index futures continued their march higher as investors await for a deal over the next stimulus bill. The Trump administration is trying to push forward to reach a deal later today. However, on the other hand, the stock benchmarks were a little under pressure as Trump issued an executive order to address the threat posed by Chinese apps TikTok and WeChat. Along with this development, market participants will closely monitor any updates over the next relief bill and the US jobs report. The Dow Jones Industrial Average futures hovered above 27200, the S&P500 futures rose to 3346, almost recovering all COVID19 losses, and Nasdaq futures record another all-time high of 11270.

Metals

Gold prices posted another record high of $2075 overnight supported by the emerging US-China tensions, and stimulus hopes. Meanwhile, the price of a silver ounce rose to $29.82, the highest level since February 2013, while palladium futures eased to $2237.

Oil

Oil prices are a little softer for the second day amid growing concerns over the US economic recovery. The West Texas Intermediate crude September delivery dipped to $41.66, and Brent blend October delivery dropped to $44.83.

Major Economic Events

GMT Country Event Expectation Previous

12:30

US

 Nonfarm Payrolls (Jul)

1600

4767

12:30

US

Unemployment Rate (Jul)

10.5%

11.10%

12:30

US

 Average Hourly Earnings (MoM) (Jul)

-0.5%

-1.2%

12:30

CA

 Employment Change (Jul)

400.0

952.9

12:30

CA

Unemployment Rate (Jul)

11.0%

12.3%

14:00

CA

 Ivey PMI (Jul)

57.5

58.2

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