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August 6, 2021

This is the Current Situation of the Market Ahead of the NFP

 The cautious movement of the currency was exhibited in the European session, with the greenback dollar trading continuing to lead most of its major rivals ahead of the publication of the US NFP jobs report.


The strengthening was supported by investors' positive expectations of a stronger reading in the US NFP, which also pushed the US stock market and treasury yields up.


At the time of writing, the dollar index is trading higher around 92.35 against a basket of major currencies.


Meanwhile, the euro, which failed in several attempts to break the 1.1900 price resistance against the USD, continued to depreciate lower following the strength exhibited by the greenback.



The pound, meanwhile, held above 1.3900 after the Bank of England (BOE) signaled for tightening in the coming years, and kept interest rates and bond-buying programs at current levels.


Apart from the NFP data, investors will also be exposed to the release of the Canadian employment report which is also expected to show an improvement as the economic reopening continues to expand. The unemployment rate is expected to decline to 7.4% from 7.8%.


The Canadian dollar traded little changed against the US dollar, as crude oil trading began to show a price recovery after recording a decline throughout the week.


On the other hand, the Aussie and New Zealand dollars are trying to hold on to gains from better prospects for the central bank to tighten monetary policy.