FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%

Volatile session ahead!


3 September 2021

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‚Äč

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.

#source

Related

Forex and Cryptocurrency Forecast for September 20-24, 2021
Forex and Cryptocurrency Forecast for September 20-24, 2021

The dollar continues to strengthen, and the EUR/USD pair moves south. Starting on Monday September 13 at 1.1810, it ends the five-day run at 1.1730. The movement...

20 Sep 2021

Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021

Futures in the United States and Europe are up today
Futures in the United States and Europe are up today

Futures in the United States and Europe are up today after the Dow managed to gain nearly 260 points and break its five-day losing streak. Although investors...

14 Sep 2021

Forex and Cryptocurrency Forecast for September 13-17, 2021
Forex and Cryptocurrency Forecast for September 13-17, 2021

The ECB meeting on Thursday 09 September went off as expected with no surprises. The interest rate remained unchanged at 0%. The European regulator...

13 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 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.