FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
FxPro information and reviews
HFM information and reviews

Volatile session ahead!

3 September 2021 Written by Hussein Al Sayed  Chief Market Strategist at Exinity Group (Gulf & MENA) Hussein Sayed

There’s no other way to describe it - the dollar has continued to “tank” this week falling to its lowest levels in nearly a month, which comes ahead of one of the most significant non-farm payrolls reports set to be released in a long time. And that is saying something after the 18 months of lottery NFP data we have seen across the pandemic crisis. The key question is whether job growth will be strong enough for Chair Powell and the majority at the FOMC to conclude that employment also fulfils the “substantial further progress” test needed to commence tapering.

The median consensus headline figure is now at 725k having drifted lower after disappointing ADP figures and a contracting employment component in the ISM manufacturing index.  Will the mismatch between supply and demand in the hiring process be seen in the most important labour data?

Higher than 900k should see a bouncing dollar and stock selloff, while a disappointing report, a bit lower than the median, will mean equities get a lift from the reduced taper chances and the dollar drifts. A very disappointing report could see the greenback find a bid as stocks take the brunt of the disappointment with real bond yields falling.

DXY sinking

The main dollar index is heading towards next support at 91.78 which is the end of July correction low. The comparable level for EUR/USD stands at 1.1909 with the euro on a winning streak not seen since last summer. The ECB hawks heard on the wires all this week are now in a blackout period ahead of next week’s ECB meeting. Markets will continue to get all giddy about the ECB potentially reining in its emergency bond purchase programme (PEPP).

DXY Daily chart

Dollar bears have pierced trendline support from the June lows above 92.50 and also the 50-day moving average. The pro-risk mood has certainly propelled the previously beaten down AUD and NZD higher, with the antipodean currencies up over 1.5% on the week.

Gold is compressing

The precious metal has consolidated this week, so far printing a “doji” candle just below the recent highs. Bugs appear to be on standby ahead of this afternoon’s report.

XAU/USD Daily chart

The major technical resistance level remains at $1835 with prices currently sitting just above the 200-day moving average.


Share: Tweet this or Share on Facebook


Dollar flat as market braces for central bank decisions later in the week
Dollar flat as market braces for central bank decisions later in the week

The dollar was up modestly in early trading in Europe on Monday, at the start of a key week for central bank meetings on both sides of the Atlantic. By 03:00 ET (08:00 GMT), the dollar index...

30 Jan 2023

Mega Central banks, OPEC, NFP & Earnings week
Mega Central banks, OPEC, NFP & Earnings week

China Stock market returns from Luna New Year break. Chinese stocks rose while most other Asian equities fell as investors looked to interest rate decisions scheduled this week in the US...

30 Jan 2023

XAU/USD remains on the defensive around $1,925 ahead of US PCE
XAU/USD remains on the defensive around $1,925 ahead of US PCE

Gold price remains on the defensive for the second straight day amid modest US Dollar strength. Thursday’s upbeat US macro data fuels hawkish Fed expectations...

27 Jan 2023

XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP
XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP

Gold price pulls away from a fresh multi-month top amid a modest US Dollar strength. Bets for smaller rate hikes by Federal Reserve, recession fears should help limit losses...

26 Jan 2023

Microsoft: Still Trapped Within Descending Channel
Microsoft: Still Trapped Within Descending Channel

Microsoft Corp., an American multinational technology conglomerate currently ranked the third largest company by market capitalization ($1.728T) which actively engages...

24 Jan 2023

Same story new week
Same story new week

Chinese New Year celebrations – many centres are closed in Asia. Treasuries sagged to end on a bearish week. USDIndex at 101.30 low as the market continued...

23 Jan 2023

Editors' Picks

FXCM information and reviews
ActivTrades information and reviews
RoboForex information and reviews
MultiBank Group information and reviews
MultiBank Group
Libertex information and reviews
Vantage information and reviews

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.