U.S Nonfarm Payrolls Will Put the Dollar and the FED in the Spotlight

Earlier in the Day:

It was a quiet start to the day on the economic calendar this morning. There were no major stats for the markets to consider in the early hours. While there were no stats, the RBA Statement of Monetary Policy will put the Aussie Dollar in the spotlight later this morning.

For the Aussie Dollar

With the RBA’s Statement of Monetary Policy in focus later this morning, an upbeat assessment of the economic recovery would deliver Aussie Dollar support. Any concerns over the current spread of the Delta variant would likely limit any major moves, however.

At the time of writing, the Aussie Dollar was down by 0.01% to $0.7404.

Elsewhere

At the time of writing, the Japanese Yen was flat at ¥109.770 against the U.S Dollar, while the Kiwi Dollar  was down by 0.11% to $0.7049.

The Day Ahead

For the EUR

It’s a quieter day ahead on the economic data front. The German economy is back in focus, with industrial production for June due out.

With little else for the markets to consider, we can expect EUR sensitivity to the numbers ahead of NFP numbers from the U.S.

At the time of writing, the EUR was down by 0.01% to $1.1833.

For the Pound

It’s a quiet day ahead on the economic calendar. House price figures for July are due out later today.

We don’t expect the numbers to have an impact on the Pound, however.

At the time of writing, the Pound was down by 0.01% to $1.3929.

Across the Pond

It’s a big day ahead on the economic calendar.

Nonfarm payrolls for July are due out later today. Following disappointing ADP numbers on Wednesday, the markets will be looking for a marked pickup to fuel a Dollar rally.

Wednesday’s impressive ISM Non-Manufacturing PMI for July leaves labor market numbers to impress and force the FED into action.

On Thursday, the U.S Dollar Spot Index fell by 0.03% to end the day at 92.244.

For the Loonie

It’s a relatively busy day on the economic calendar. Employment figures for June and July’s Ivey PMI will be in focus later today.

Expect the employment figures to have a greater impact on the day.

At the time of writing, the Loonie was up by 0.06% to C$1.2498 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.