Forex Today: Enter the US labour market
The US Dollar (USD) has managed to leave behind the negative start to the week and regained balance on Tuesday. The recovery has come on the back of a generalised recovery in US Treasury yields and ongoing tensions in the geopolitical landscape.
The US Dollar (USD) has made progress in the forex market, recovering from a poor start to the week. This recovery is attributed to rising US Treasury yields and geopolitical tensions. The US Dollar Index (DXY) has regained some of Monday's losses and briefly exceeded the 99.60 level. Key economic data releases include the ADP Employment Change, Factory Orders, and the EIA's weekly US crude oil inventory report.
The EUR/USD pair has been on the defensive, sliding below 1.1600 as flash inflation data in the Eurozone reignited speculation of a September European Central Bank rate hike. On the US domestic agenda, the final S&P Global Services PMI in Germany and the euro zone, as well as Producer Prices in the bloc, are due on September 3. GBP/USD has resumed its decline, reaching the low 1.3500s, and is expected to focus on the September 3 S&P Global Services PMI release.
USD/JPY challenged the key 160.00 level, resuming its uptrend after a Monday setback. The Monetary Base figures and BoJ's Takada's speech are on the calendar. AUD/USD has reverted to the 0.7140/0.7130 band, with the Q2 GDP Growth Rate and Ai Group Manufacturing index as key data points. WTI oil prices surged past the $90 mark per barrel, driven by US-Iran tensions and supply concerns, while gold retreated to near three-week lows.
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