07 Sep

Currency Majors Are Consolidating. Investors Assess the US Labor Market Report

September 7, 2020

by JustForex

The greenback demand has been recovered partially after the publication of quite optimistic data on the US labor market for August. Thus, the number of people employed in the nonfarm sector of the country counted to 1.371K, which is slightly below market expectations at 1.400K. At the same time, the unemployment rate fell to 8.4% instead of 9.8%. The growth in average hourly earnings accelerated from 0.1% (MoM) to 0.4% (MoM). At the same time, the US currency is still under pressure due to the statements by Fed Chairman Jerome Powell that the regulator plans to keep US rates at a lower level for an extended period. Currently, currency majors are consolidating.

Today, it became known that the UK government plans to issue a new law that will cancel key parts of the agreement on the country’s exit from the EU. This could lead to the fact that the conclusion of a new trade deal until the end of the agreement in December may be in question. Meanwhile, Brexit talks between UK and EU officials should continue tomorrow.

The “black gold” prices are consolidating after a sharp fall at the end of last week. At the moment, futures for the WTI crude oil are testing the $39.15 mark per barrel.

Market indicators

On Friday, there was the bearish sentiment in the US stock market: #SPY (-0.82%), #DIA (-0.55%), #QQQ (-1.33%).

On Friday, the 10-year US government bonds yield rose significantly. The figure reached 0.72-0.73%.

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The news feed for 2020.09.07:

No important news is expected today. Please note that volatility may be reduced due to Labor Day celebrations in Canada and the US.

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.


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