The US Dollar extended Wednesday’s decline, taking the US Dollar Index (DXY) below 99.00 and under its 200-day SMA. The move tracked rising expectations of a Bank of Japan rate rise, while attention turned to Friday’s US releases: Nonfarm Payrolls, the Unemployment Rate and wage inflation data. In FX, EUR/USD rose through 1.1600 to four-day highs, and GBP/USD recovered the 1.3550 area to two-day highs after two sessions of losses. USD/JPY slid to around 155.00, a level last seen in early August.
Key Economic Diaries and FX Movements
European diaries include German Factory Orders, plus S&P Global Construction PMI readings for Germany and the euro area, followed by eurozone Retail Sales; the UK schedule features the S&P Global Construction PMI and the Bank of England Decision Maker Panel (DMP) survey. In Japan, Household Spending is due, then the advanced Coincident and Leading Economic indexes. AUD/USD nudged above 0.7200 towards multi-week highs, with Westpac Consumer Confidence and housing data slated for September 8. WTI climbed above $93.00 a barrel for the first time since late July, while gold rose through $4,500 per troy ounce, helped by lower US Treasury yields.
