All eyes are on the U.S. dollar ahead of tomorrow's U.S. employment report
05.08.2021
- U.S. Initial Jobless 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 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 later this year and interest rate hikes by 2023. As the U.S. 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 and U.S. dollars 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 interest rate decision and statement, the BOE asset purchase program 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 Neel Kashkari, President of the Minneapolis Fed, 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.
Author: Keisuke Sakurai
