Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Weakens as Key Nonfarm Payrolls Release Looms

ForexAug 31, 2021 15:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - The dollar fell to two-week lows in early European trade Tuesday, continuing the weakness stemming from Federal Reserve Chairman Jerome Powell’s dovish speech at the end of last week and looking ahead to Friday’s key employment report.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 92.472, just above its lowest level in a fortnight.

EUR/USD edged 0.3% higher to 1.1829, near its highest levels since the start of the month, USD/JPY was down 0.1% at 109.82, GBP/USD gained 0.3% to 1.3799, near a two-week high, and the risk sensitive AUD/USD climbed 0.6% to 0.7338.

The U.S. currency is still suffering the consequences of Federal Reserve Chair Jerome Powell declining on Friday to offer a firm signal on when the central bank plans to cut its asset purchases, surprising many in the market who had been looking for a concrete timetable.

“The most hawkish part of the FOMC has been extremely vocal in recent weeks, including the host of the Jackson Hole, Esther George, but it still seems as if the FOMC is yet to form a consensus/majority view on how to address tapering at the meeting in September,” said analysts at Nordea, in a note.

Helping the general risk-on tone was the official end of the U.S. military presence in Afghanistan, with the last aircraft departing from Kabul airport, meeting President Joe Biden’s timetable, without any further American casualties.

Attention now turns to Friday’s nonfarm payrolls release, particularly given the importance the central bank has placed upon a recovery in the labor market in its tapering thinking.

The payrolls are currently expected to increase by around 750,000 in August, a drop from the growth of 943,000 the previous month, but concerns are rising that the delay in outlining a timetable for tapering was caused by expectations of a poor number.

Weaker jobs numbers could instead cement a case for later action - perhaps a pre-announcement in November with a formal decision in December.

Elsewhere, USD/CNY edged 0.1% lower to 6.4619, not far removed from Friday’s three-week low of 6.4595, with the yuan largely weathering the disappointing economic data released earlier in the day.

Manufacturing PMI dipped to 50.1 from 50.4 last month, showing factory activity expanded at a slower pace. The non-manufacturing PMI in August slumped to 47.5, the lowest reading since February 2020,

 

Dollar Weakens as Key Nonfarm Payrolls Release Looms
 

Related Articles

Dollar Lower as Longs Head For The Exit
Dollar Lower as Longs Head For The Exit By Investing.com - Jan 14, 2022

By Peter Nurse Investing.com - The U.S. dollar weakened in early European trade Friday, heading for its worst week in more than a year as traders now consider Federal Reserve...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email