ForexLive Americas FX news wrap: Dollar struggles after big non-farm payrolls miss

Forex news for September 3, 2021:


  • US 10-year yields up 3 bps to 1.324%
  • Gold up $19 to $1828
  • WTI crude oil down 72-cents to $69.28
  • S&P 500 flat at 4536
  • AUD leads, USD lags

If you bet on ADP enough times, eventually you’ll get it right. Not that ther ewas a big dollar move on the jobs report anyway. It was a sloppy reaction afterwards as FX looked to the counter-intuitive move in bonds initially in a whipsaw before the dollar eventually started a grind lower.

There are two theories on bonds 1) They’re pricing in a concession ahead of supply next week 2) They’re pricing out the chance of a policy error and a likelihood that the Fed keeps rates low enough to achieve real inflation. There’s no real consensus.

The straight-forward moves in FX make a bit more sense with the front-end driving the price action and the growing chance that the Fed won’t move ahead of other central banks. It was a fairly uniform move across the board of around 20 pips.

We’d all be forgiven for expecting a bigger move but dollar bulls pointed to the improvement in the household survey (unemployment rate). There are also questions about global growth around delta that extend well beyond the USA.

Have a great weekend.


Articles You May Like

Gold heads for second weekly gain, silver hits 11-year high
Dollar Still in Recovery With Indecisive Momentum; Eyes on USD/CHF Resistance
UK expect doing business in China to become harder over the next five years
Forexlive Americas FX news wrap 17 May.The price of the DXY index closes below its 100W MA
USDCHF buyers are making a play. Can they keep the upside momentum going.

Leave a Reply

Your email address will not be published. Required fields are marked *