Forex Today: US Dollar firms ahead of Nonfarm Payrolls as Hormuz risk returns
The US Dollar (USD) posted gains against every major currency on Thursday, with the US Dollar Index (DXY) up 0.26% near the 100.00 level as Oil rallied 3% on the reported Strait of Hormuz vessel ban, while Gold and Silver declined.
The US Dollar strengthened on Thursday, gaining against major currencies as oil prices surged 3% following a ban on vessels linked to nations Tehran views as hostile from the Strait of Hormuz. The US Dollar Index (DXY) rose 0.26% near the 100.00 level. Labor market data, including lower-than-expected Initial Jobless Claims and Challenger Job Cuts, added to the Dollar's appeal.
Nonfarm Payrolls, a key economic indicator, was on the horizon, prompting investors to seek safety in US Dollars. The US Dollar was strongest against the Swiss Franc, while Gold and Silver declined. Oil prices climbed 3% to $77 per barrel, and WTI Oil is now $77 per barrel. EUR/USD slipped around 0.27% to 1.1500, and GBP/USD eased to 1.3450.
USD/JPY gained around 0.39% to near 158.40. On Friday, China released July trade figures, while Europe reported German Industrial Production and Trade Balance. US Nonfarm Payrolls would be the main focus, with expectations of 80K jobs added, Unemployment Rate at 4.2%, and Average Hourly Earnings up 0.3% MoM and 3.5% YoY. Fed Governor Lisa Cook expressed openness to rate hikes to combat high inflation.
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