Labor Day in the US
Daily Currency Update
Today is expected to be relatively quiet in FX markets due to it being a bank holiday in the US for Labor Day. Last Friday markets saw a better than expected US Nonfarm Payrolls for August at 187k compared to 170k expected and 157k for the previous reading. The unemployment rate increased to 3.8% from 3.5% and US manufacturing PMI came out at 47.6 versus 46.4 prior and 47.0 expected. Despite this data from the US, the dollar remains near its highs this week which could be due to poor growth prospects globally.Markets are gearing up for the Reserve Bank of Australia’s (RBA) interest rate decision tomorrow and the Bank of Canada's later in the week on Wednesday. The consensus is that the Cash Rate in Australia is likely to remain unchanged as well as in Canada.
Key Movers
We are due the Sentix Investor Confidence out of the eurozone which is expected to release at -20.0 down from -18.9 in the prior reading. This could guide the euro today, however there are very little significant movers today in the form of data releases.German exports and retail sales data was released earlier this morning to show a disappointing July. The German economy has had a weak start to the 3rd quarter of the year and risks falling back into negative growth. German exports fell 0.9% month-on-month in July compared to growth of 0.2% in June.
Expected Ranges
- GBP/USD: 1.2565 - 1.2725 ▲
- GBP/EUR: 1.1610 - 1.1715 ▼
- GBP/AUD: 1.9450 - 1.9615 ▼
- EUR/USD: 1.0765 - 1.0890 ▲