Will the USD Return to Seize the Throne After the NFP? - Kakiforex.com - Financial Market Media No. 1 in the World Will the USD Return to Seize the Throne After the NFP? Will the USD Return to Seize the Throne After the NFP?
InstaForex

September 4, 2021

Will the USD Return to Seize the Throne After the NFP?

 The U.S. dollar continued to trade at a nearly one -month low against its major rivals as market focus is now focused on the U.S. NFP jobs report to be released tonight.


Against most major currencies, the dollar index traded lower at 98.18 during the European session.


Greenback trading has been under pressure since ADP jobs data last Wednesday showed a less encouraging reading, causing market expectations for tonight’s NFP to be weak as well.


However, data published on Thursday showed a strong recovery in the labor market following the number of retrenchments falling to its lowest level in more than 24 years.


This prompted investors to be more cautious in placing positions against the greenback dollar.



Asian currencies, continued to lead gains with the kiwi dollar continuing to rise higher to its highest level since mid -June, while the Aussie dollar strengthened to a one -month high.


New Zealand appears to have managed to control a new wave of the Covid-19 outbreak and expectations for the central bank to raise interest rates in October are back on the rise.


The euro traded strong with support from the weakness of the US dollar and some comments from hawkish European Central Bank (ECB) policymakers. There is also speculation that the central bank will withdraw its stimulus following strong inflation figures.


While the pound remained traded higher, the market's focus is now on Prime Minister Boris Johnson's announcement of a tax hike next week.


The yen remained stable, while the Japanese stock market rose following news of Japanese Prime Minister Yoshihide Suga stepping down.