Dollar picks up before today’s NFP

A winning strategy must include losing. – Robert Kiyosaki

 

 

HEADLINES

 

 

• Dollar firmer ahead of NFP report
• Fed taper bets take shine off gold in run-up to U.S. jobs data
• Wall St rises as jobless claims fall
• Fresh Bitcoin ETF hopes back BTC’s swift rally above $40,000
• Bank of England initial interest rate increase in the third quarter of 2022 – Wells Fargo

 

 

FOREX

 

 

Dollar firmer ahead of NFP report

 

The dollar is mixed across the board, up against safe-haven rivals and high-yielding assets, and mostly down against commodity-linked currencies. The market mood picked up during the American afternoon, following news that the US Senate is in talks to finish the infrastructure bill and kick-start discussing the $ 3.5 trillion budget afterwards.

The focus shifts to the US Nonfarm Payrolls report.  The US is expected to have added 870K new jobs in July, slightly above the previous 850K. The Unemployment rate is expected to have retreated to 5.7% from 5.9%, while the Labor Force Participation Rate is seen steady at 61.6%.

 

 

COMMODITIES

 

 

Fed taper bets take shine off gold in run-up to U.S. jobs data

 

Gold eased on Thursday after a U.S. Federal Reserve official’s hawkish comments reinforced bets for early tapering of the central bank’s asset purchases ahead of a key jobs report. Gold prices jumped more than 1% on Wednesday on weaker-than-expected U.S. ADP jobs data, but gave up those gains after Fed Vice Chair Richard Clarida suggested the central bank could begin tapering later this year.

 

 

STOCKS

 

 

Wall St rises as jobless claims fall

 

U.S. stock indexes rose on Thursday after data showed fewer Americans filed for unemployment benefits last week, while a decline in shares of health insurer Cigna dragged healthcare stocks lower. Initial claims for state unemployment benefits fell by 14,000 to 385,000 in the week ended July 31, while layoffs dropped to their lowest level in more than 21 years last month

 

 

CRYPTO

 

 

Fresh Bitcoin ETF hopes back BTC’s swift rally above $40,000

 

Crypto investors are seeing gains in Ether (ETH) and Bitcoin (BTC) on Aug. 5 after the successful launch of Ethereum's London hard fork and a series of new Bitcoin exchange-traded fund filings, resulting in a rally that propelled BTC's price 9% higher and caused Ether to gain 11.75%, which pushed the altcoin closer to the elusive $3,000 level.

 

 

ANALYSIS

 

 

Bank of England initial interest rate increase in the third quarter of 2022 – Wells Fargo

 

“Given a monetary policy announcement that was arguably modestly hawkish in tone, we have modestly brought forward our expected timing for the Bank of England's rate hike cycle. We now forecast an initial rate increase in Q3-2022 (compared to early 2023 previously), albeit by only 15 basis points in 0.25%. We expect the policy rate to remain steady in Q4-2022. In addition, while beyond our formal forecast horizon we anticipate multiple rate hikes during 2023, and would expect further cumulative rate increases of 50-75 basis points during that year.”

 

 

CHART

 

 

US dollar / Japanese yen – Daily Candlesticks

Source: GKFX Prime Metatrader 4

USD/JPY formed a bullish engulfing candlestick on the daily price chart after testing a demand zone created by the lows in May. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/bank-of-england-initial-interest-rate-increase-in-the-third-quarter-of-2022-wells-fargo-202108051531
https://www.fxstreet.com/news/forex-today-dollar-firmer-ahead-of-nfp-report-202108051942
https://www.reuters.com/business/futures-rise-ahead-weekly-jobless-claims-data-2021-08-05/
https://www.reuters.com/article/global-precious/precious-fed-taper-bets-take-shine-off-gold-in-run-up-to-u-s-jobs-data-idUSL4N2PCJNX
https://cointelegraph.com/news/fresh-bitcoin-etf-hopes-back-btc-s-swift-rally-above-40-000