Forex Today: Markets’ attention is focused on the US NFP

The dollar managed to shake off some of the post-Fed pullback and advanced significantly in a context dominated by risk-averse sentiment. On the central bank side, the BoE made a cautious 25bp rate cut, although it warned against the prospect of successive reductions.

Here’s what you need to know on Friday, August 2:

The US Dollar Index (DXY) was the only gainer amid the widespread risk-off backdrop, which saw yields heading further south and a sharp sell-off in equities. On August 2, Non-Farm Payrolls takes center stage, seconded by the unemployment rate and factory orders.

EUR/USD resumed its decline and returned to the sub-1.0800 region due to the widespread risk-off sentiment. There are no data releases scheduled in the Eurozone on August 2.

GBP/USD suffered from the strong rally in the Dollar and retreated to four-week lows despite the cautious rate cut by the BoE. On August 2, BoE Chief Economist H. Pill is scheduled to speak.

A volatile session left USD/JPY hovering around the 150.00 neighborhood amid risk-off trading and falling US and Japanese yields. The Japanese calendar is empty on August 2.

There seems to be no respite for the AUD/USD slide, which sharply reversed Wednesday’s bullish attempt and returned to focus on the 0.6500 region once again. Australian Housing Loans and Housing Investments are expected on August 2 along with Output Prices in the second quarter.

WTI prices partially faded from Wednesday’s strong rally on US recession concerns and a stronger US dollar. The commodity revisited the $77.00 per barrel mark after hitting highs near the $79.00 region.

Gold prices failed to sustain the initial bullish attempt towards the $2,460 per troy ounce zone and eventually printed modest losses near $2,440. Silver was sold off to the $28.00 per ounce zone after two consecutive daily advances.