Will the U.S. employment report affect European currencies?
03.09.2021
- U.S. Employment Report
- MIS/ISM Non-Manufacturing Purchasing Managers' Index
Yesterday, U.S. stock prices rose, creating a risk-on market characterized by higher stock prices, lower interest rates, and higher oil prices. The Nasdaq and S&P 500 both hit new record highs, albeit by a narrow margin. The S&P 500 closed at 4,536, up 12 points from the previous day.The number of new U.S. unemployment insurance claims released yesterday came in at 340,000, falling short of the market forecast of 345,000 and marking the lowest level since March 2020.
In the foreign exchange market, the US dollar’s upward momentum has weakened due to a decline in the yield on 10-year US Treasuries, and the EUR/USD pair has risen, finding support at the 20-period moving average on the hourly chart. The EUR/USD is currently trading around 1.187. However, on the daily chart, it has just reached the 200-period exponential moving average, and we need to closely monitor whether the rally will continue up to the previous high of 1.190.
Today’s schedule includes Turkey’s Consumer Price Index and Producer Price Index at 4:00 PM, the UK’s Services PMI (final reading) at 5:30 PM, Eurozone retail sales at 6:00 PM, U.S. employment data and Canada’s second-quarter labor productivity index at 9:30 PM, the U.S. Services PMI (final reading) at 10:45 PM,and at 11:00 PM, the US ISM Non-Manufacturing Index. Nonfarm payrolls in today’s US employment report are expected to come in at 750,000. I intend to closely monitor how much the actual result deviates from this figure.
Author: Keisuke Sakurai
