Nonfarm Payrolls… the Dollar’s doom and gloom?

The Greenback added to the weekly leg lower and pierced the key 101.00 barrier against the backdrop of persistently low US yields across the curve and steady speculation of a potential half-point interest rate cut by the Fed.

Here is what you need to know on Friday, September 6:

The US Dollar Index (DXY) added to previous losses and put the 101.00 support to the test amidst rising cautiousness prior to the release of the US labour market report on Friday. The crucial Nonfarm Payrolls, and the Unemployment Rate are due on September 6, along with the speech by the Fed’s Williams (New York).

EUR/USD built on Wednesday’s gains and reclaimed the 1.1100 barrier and beyond on the back of a continuous downward bias in the US Dollar. The German Balance of Trade results and Industrial Production are expected on September 6, followed by the third estimate of the Q2 GDP Growth Rate and final Employment Change data in the broader Euroland.

GBP/USD rose further in line with the rest of its risk peers, coming close to the key 1.3200 hurdle amidst persistent Dollar weakness. On September 6, the Halifax House Price Index is due, along with the BBA Mortgage Rate.

USD/JPY retreated to new four-week lows after breaking below the key 143.00 support following a weaker Dollar, lower yields, and hawkish remarks from a BoJ official. Household Spending data and preliminary Coincident Index and Leading Economic Index will be published on September 6.

AUD/USD rebounded further, maintaining the trade above the key 0.6700 barrier following the selling pressure in the Greenback, a recovery in commodity prices, and the cautious tone from the RBA’s Bullock. Home Loans and Investment Lending for Homes will be unveiled on September 6.

Quite a volatile day saw prices of WTI clinch a new 2024 low near $68.80, although regaining some upside momentum afterwards in response to positive news from the OPEC+ as well as a bullish report from weekly US crude oil inventories by the EIA.

Prices of Gold climbed past the $2,520 mark per ounce troy, adding to Wednesday’s advance on the back of further downside pressure in the US Dollar and shrinking US yields. Silver rallied to weekly tops, surpassing the $29.00 mark per ounce and flirting with the interim 55-day and 100-day SMAs.