USD/JPY was a modest mover in Asia but is not quite ready to break down just yet. It looks like traders will be looking to the US ADP employment change and weekly initial jobless claims data later for further clues. That is not to mention the ISM services PMI also being on the cards.
The rest of the major currencies bloc are not seeing much change so far today. The dollar was softer overall yesterday, falling after the JOLTS job openings data here. US futures are also keeping more cautious, down 0.1%, after some back and forth trading yesterday.
It’s all on how the US labour market is holding up, with markets leaning towards pushing the Fed to cut by 50 bps later this month. The question now is, will Powell & co. give in if this week’s data remains on the softer side?
As for European trading today, it’s going to be more of a placeholder session. It’s all about US data at the moment. That will be the key trigger for dollar and risk sentiment in the remaining two days this week.
0545 GMT – Switzerland August seasonally adjusted unemployment rate
0600 GMT – Germany July industrial orders
0730 GMT – Germany August construction PMI
0830 GMT – UK August construction PMI
0900 GMT – Eurozone July retail sales
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.