The dollar succumbed to expectations of a possible 50 basis point rate cut by the Fed later this month after data pointed to a further slowdown in the US labor market, all ahead of crucial metrics later in the week.
Here’s what you need to know on Thursday, September 5:
The Dollar Index (DXY) retreated to multi-day lows near 101.20 on market talk suggesting a further rate cut and falling US yields. ADP Employment Change takes center stage on September 5, followed by weekly Initial Jobless Claims, S&P Global Final Services PMI and ISM Services PMI.
EUR/USD regained its composure and flirted with the 1.1100 barrier amid a renewed bearish bias in the Dollar. German Factory Orders are due out on September 5, along with HCOB Construction PMI in both Germany and the Eurozone, and Retail Sales in the Euro bloc.
Broad optimism in the risk complex lifted GBP/USD back above the 1.3100 hurdle, briefly hitting weekly highs. New car sales are due on September 5, followed by the final S&P Global Construction PMI.
Further appreciation in the Japanese Yen, lower yields and a sharp pullback in the US Dollar helped USD/JPY retest the 144.00 region, adding to Tuesday’s decline. Average cash earnings and weekly foreign bond investment figures are expected on September 5.
On a rather volatile day, the AUD/USD was barely changed just above the 0.6700 level amid Chinese concerns, a weaker Dollar and falling commodity prices. Trade balance results and a speech by M. Bullock from the RBA are expected on September 5.
WTI prices fell to fresh yearly lows near the $69.00 per barrel mark amid prevailing bearish sentiment among traders.
Gold prices alternated between gains and losses just below the $2,500 per troy ounce mark despite the downward move in the Dollar and the negative performance of US yields. Silver saw a ray of hope following the bearish tone of the Dollar and advanced modestly beyond the $28.00 per ounce mark.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
