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Japanese Yen consolidates as traders weigh weak US data, market sentiment
USD/JPY trades around 157.65 on Wednesday at the time of writing, little changed on the day, as weakness in the US Dollar (USD) is offset by investors' cautious stance toward the Japanese Yen (JPY).
US Dollar slips as ADP collapse offsets hot services
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of six major currencies, trades modestly lower near 99.80 on Wednesday, shedding around 0.15% after a stagflationary batch of United States (US) data.
British Pound rises as soft ADP jobs report weighs on Dollar, NFP looms
The Pound Sterling (GBP) advances some 0.12% on Wednesday as the US Dollar (USD) registers back-to-back days of losses, after US jobs data was softer than expected, even though business activity in the services sector continues to expand solidly. The GBP/USD pair trades at 1.3467.
Silver Price Forecast: Daily momentum improves, but weekly outlook stays bearish
Silver (XAG/USD) jumps more than 4% on Wednesday as weaker-than-expected US ADP employment data and easing energy-driven inflation prompt traders to scale back expectations for Federal Reserve (Fed) rate hikes. At the time of writing, XAG/USD trades around $62.30, near its highest level in a month.
Euro steadies against Japanese Yen as Eurozone PMIs beat forecasts
EUR/JPY trades broadly flat near 181.94 on Wednesday, up a marginal 0.01% as the cross pauses after a steady four-session recovery.
Australian Dollar climbs as softer US data, improving risk sentiment weigh on USD
AUD/USD trades around 0.7060 on Wednesday at the time of writing, up 0.20% on the day. The pair benefits from broad-based US Dollar (USD) weakness as investors react to softer-than-expected US economic data and improved risk sentiment driven by the latest geopolitical developments.
Euro: Recovery holds within 1.15–1.16 band against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret describe the Euro (EUR) as steady in the mid-to-lower 1.15 area, trading close to fair value based on 2-year US–Germany spreads. Fundamentals and sentiment are seen as constructive, underpinning EUR recovery since early Q3.
US Dollar: Limited downside on softer payrolls – TD Securities
TD Securities strategists expect only modest US Dollar (USD) weakness if July payrolls or the unemployment rate disappoint.
US Treasury lifts Iran sanctions as deal hopes gain momentum
On Wednesday, the US removed Iran-related sanctions, according to the US Treasury Department’s website. The US Treasury lifted sanctions imposed on two aircraft linked to the Islamic Revolutionary Guard ‌Corps (IRGC) and three airlines.
United States EIA Crude Oil Stocks Change above expectations (-1.5M) in July 31: Actual (2.479M)
United States EIA Crude Oil Stocks Change above expectations (-1.5M) in July 31: Actual (2.479M)
Brazilian Real: Flows support carry resilience – BNY
BNY’s Geoff Yu notes Brazilian portfolio inflows are near post-COVID highs ahead of the Selic decision, with strong demand for equities and government bonds.
Euro edges higher as weak US labor data, lower Oil prices temper Fed hike bets
EUR/USD trades modestly higher on Wednesday as weaker-than-expected US labor market data and easing energy-driven inflation risks temper Federal Reserve (Fed) rate-hike expectations and weigh on the US Dollar (USD).
New Zealand Dollar: Labor slack tempers strong jobs data – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad notes the New Zealand Dollar and local yields slumped after strong Q2 employment and wage gains were offset by rising labor supply and higher unemployment.