Market Drivers – US Session: NFP In Focus

The financial world is holding its breath as the highly anticipated US Nonfarm Payrolls (NFP) report takes center stage. All eyes are on this crucial data as it’s expected to heavily influence the direction of the US Dollar and other major currencies.

What to Watch on Friday, September 5:

• US Dollar: The US Dollar Index (DXY) has already gained momentum, partially reversing recent losses in anticipation of the NFP. The report, along with the Unemployment Rate, will be the key driver. A speech from Fed’s Goolsbee is also on the calendar.

• EUR/USD: This pair is consolidating around 1.1650, awaiting the US data. The economic calendar for the Eurozone includes Germany’s Factory Orders and updated GDP and employment figures.

• GBP/USD: The pair is trading in a tight range near 1.3450-1.3440. UK Retail Sales and the Halifax House Price Index are on deck.

• USD/JPY: This pair has resumed its uptrend, pushing past the 148.00 mark. In Japan, upcoming reports include Household Spending and Average Cash Earnings.

• AUD/USD: The Australian dollar is facing renewed pressure, failing to hold the 0.6500 region. Traders will be watching for the Balance of Trade and Household Spending figures.

• Commodities: US crude oil (WTI) has dipped below $63 a barrel amid speculation of increased output from OPEC+. Meanwhile, gold and silver have paused their recent rallies after hitting new highs.