All eyes are on the U.S. dollar ahead of tomorrow’s U.S. jobs report

All eyes are on the U.S. dollar ahead of tomorrow’s U.S. jobs report

05.08.2021

Yesterday, stock prices rose in European markets but fell in U.S. markets, resulting in a mixed performance. The U.S. ISM Non-Manufacturing Purchasing Managers' Index for July, released yesterday, came in at 64.1—a record high—compared to the market forecast of 60.5, but this did not lead to a rise in stock prices. WTI crude oil fell nearly 3% to the $68.4 range.

In the foreign exchange market, the U.S. dollar surged yesterday after Federal Reserve Vice Chair Clarida hinted at an announcement of tapering within the year and interest rate hikes by 2023. As the dollar rose, the euro/dollar pair plummeted, falling from 1.190 to 1.183, and is currently testing lower levels.The AUD/USD pair plummeted from 0.742 to 0.737 but has since stabilized within a range, with the Australian dollar and the U.S. dollar remaining in a state of equilibrium.

Today’s schedule includes German manufacturing orders at 3:00 PM, French industrial production and manufacturing production index at 3:45 PM, the ECB’s monthly report at 5:00 PM, the UK construction PMI at 5:30 PM, and the UKthe BOE’s policy rate and statement, the BOE’s asset purchase limit announcement, a press conference by BOE Governor Bailey at 8:30 PM, Canada’s trade balance and U.S. initial jobless claims at 9:30 PM, the U.S. trade balance at 11:00 PM, remarks by Fed Governor Waller at 11:00 PM, and remarks by Minneapolis Fed President Kashkari at 1:00 AM.Ahead of tomorrow’s U.S. jobs report, we will carefully assess whether the U.S. dollar’s strength will hold.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran