It is the most important data day of the week. The non-farm payroll jobs report tops the priority list on today’s daily Forex news and trade opportunities as this report is expected to be an indicator of the US central bank’s next course of action.
2nd September, AtoZForex – Having fallen sharply of disappointing manufacturing data yesterday, the dollar is expected to see more big moves today.
#1 UK manufacturing PMI hits 10-month high
The UK’s manufacturing sector has bounced back significantly from its initial post-Brexit descended position, as the data released by IHS Markit suggests. The information from IHS Markit shows that the UK’s factories hit the activity of 53.3 in August, which accounts for the highest level in 10-months and a large advancement from July’s reading when the sector fell down at its sharpest level since 2009.
#2 US dollar sinks on disappointing ISM Manufacturing PMI
US Manufacturing unexpectedly dipped in August for the first time in six months. Thanks to slumping orders and production that raise concerns of renewed industrial weakness. The index dropped to 49.4, below a forecast of 52.0. The fall of 3.2 points was the biggest since January 2014.
#3 Non-farm payroll
As recently stated by the Federal Reserve Vice Chairman Stanley Fischer on CNBC, the decision on whether to hike interest rates should be looking forward, not backward — and the next jobs report will figure into the process. Forecast to show 186k jobs added, this potentially shows the strength of the job sector even though it falls behind last month’s 255k jobs added. However, some skepticism has now hit the markets due to yesterday’s disappointing manufacturing data.
Opportunity: Buy USDCHF on positive reading
#4 Canada Trade Balance
The country’s latest trade balance data is forecast to show a 3.2m deficit in value between imported and exported goods during the reported month. The quarterly labor Productivity is also forecast to show a 0.2% change in labor efficiency when producing goods and services. Both data are forecast to come below the previous reports, hence, a further potential weakness for the Canadian dollar.
Opportunity: Buy USDCAD on disappointing data
#5 UK Construction PMI
After yesterday’s upbeat manufacturing PMI data, the construction PMI is also forecast to show an improvement in the sentiment from 45.9 to 46.6 this month. The sterling has been creeping higher lately, however, the currency remains depressed and in need of a catalyst to push it to a breakout.
#6 Oil tanks further
Concluding the daily Forex news and trade opportunities, we look at the oil condition. Oil prices have continued to tank, following reduced expectations of a September OPEC output freeze. Saudi Arabia continues to pump oil at record levels, while Iran’s rumored willingness to join an output freeze deal is doubtful. The trend has now changed back to bearish.
Opportunity: Sell Brent on rallies
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