All eyes are on the U.S. dollar ahead of tomorrow's U.S. employment report
05.08.2021
- U.S. Initial Unemployment Insurance Claims
- Kashkari (U.S.): Remarks by the President of the Minneapolis Federal Reserve Bank
Yesterday, stock prices rose in European markets but fell in U.S. markets, resulting in a mixed trading session.The U.S. ISM Non-Manufacturing Index for July, released yesterday, hit a record high of 64.1—exceeding 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 by the end of the year and interest rate hikes by 2023. As the U.S. dollar rose, the euro/dollar pair plummeted.It fell from 1.190 to 1.183 and continues to test lower levels. The AUD/USD pair plummeted from 0.742 to 0.737 but has settled within a trading range, with the Australian dollar and the U.S. dollar remaining in a state of equilibrium.
Today’s schedule includes German manufacturing orders at 15:00, French industrial production and manufacturing production index at 15:45, the ECB’s monthly report at 17:00, and the UK’sConstruction PMI, at 20:00 the UK BOE policy rate and statement, and the UK BOE asset purchase program announcement, at 20:30 a press conference by UK BOE Governor Bailey, at 21:30 Canada’s trade balance, U.S. initial jobless claims, and U.S. trade balance,23:00: Remarks by U.S. Federal Reserve Governor Waller; 29:00: Remarks by U.S. Minneapolis Fed President Kashkari are scheduled. Ahead of tomorrow’s U.S. employment report, we will carefully assess whether the U.S. dollar will maintain its strength.
Author: Keisuke Sakurai
