Canada will announce its monthly GDP on July 31, at 15:30 MT time.
Evergreen buck hovers over 1-week maximums ahead of NFP report
On Friday, the major American currency stuck to one-week maximums versus other key currencies because market participants waited for the publication of decisive American employment data. Another crucial factor was that worries over Washington's protectionist policies relieved.
Investors were waiting for the monthly American nonfarm payrolls news for further hints on the strength of the job market after Thursday’s data disclosed that initial jobless claims soared more than anticipated the previous week.
Meanwhile, worries as for a probable global trade conflict because of American duties aluminum and steel imports relieved after Donald Trump signed a less radical variant of his tariff plan on Thursday.
Trump set 25% tariffs on steel and 10% on aluminum. However, he also rolled out exemptions for Mexico and Canada. Additionally, he left the door open for other participants.
As for Japan’s reaction to the news, Tokyo told that the move would have a huge impact" on the countries' bilateral close relationships, while China stressed that it didn’t appreciate the decision. Besides this, South Korea told that it might even dare to file a complaint to the WTO.
Rating the greenback’s true strength versus a group of six key currencies, the US dollar index gained 0.08% being worth 90.18, which is the best result since March 1.
The common currency and the British pound were nearly intact, with EUR/USD being worth 1.2315, while GBP/USD showed 1.3801.
The common currency stabilized having posted abrupt losses on Thursday exactly when European Central Bank Governor Mario Draghi told that regional inflation was still low and soaring protectionism appears to be a risky thing, although he acknowledged faster surge in the EU.
The Australian dollar was nearly intact. The currency pair AUD/USD hit 0.7791, while NZD/USD rallied 0.17% trading at 0.7274.
The United States will release the advance GDP growth rate for the previous quarter on July 30, at 15:30 MT time.
The US unemployment claims are announced on Thursday at 15:30 MT time.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…