September 2, 2021

What Fate Awaits The USD In The New York Session?

 The US dollar continued to trade gloomily following declining expectations of the US NFP jobs report tomorrow, as shown by disappointing ADP data.

ADP data readings show a very weak increase in private sector employment with only an addition of 374,000 made in August. This was further stressed by the employment sub-component in the declining ISM survey manufacturing report, although overall the data increased.

This gloomy outlook pressured the greenback dollar to continue to trade weaker against most major currencies, with the dollar index trading around 92.43.

While awaiting the release of the NFP report, the US unemployment claims reading to be released tonight will be the focus of investors first, where it is expected to continue to show a decline compared to the previous week.

Asian currencies, the Aussie dollar and New Zealand continued to display their best performances by rising higher in today’s trading session, capitalizing on the greenback’s weakness.

Moreover, the Canadian dollar traded stable as oil prices returned to show a recovery after the previous fall following OPEC +’s decision to increase production.

Meanwhile, the euro traded stronger following the weaker US dollar, while also supported by speculation that the European Central Bank (ECB) would cut stimulus following high European Zone inflation figures.

The pound also rose and continued to strive to reach a price of 1.38000 against the US dollar. Coronavirus cases are still showing an increase in the UK, but investors are starting to ignore the increase.