Jobs data outperforms, dollar higher
The dollar is higher versus all G-10 peers following blowout employment figures and revisions to previous month figures. A beat in labor data sent the dollar to weekly highs. Workplaces continue to adjust to the changing covid landscape as some companies delay returning plans to as late as February 2022. This weekend, the Senate is expected to vote on the $550B infrastructure bill.
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August 6, 2021
EUR/USD 1.1774 GBP/USD 1.3893 USD/CAD 1.2538 AUD/USD 0.7374 USD/JPY 110.22 USD/CNH 6.4799 USD/ILS 3.2192 USD/MXN 19.9469 USD/CHF 0.9117 USD/INR 74.155 USD/BRL 5.2484 USD/SGD 1.3536 USD/DKK 6.3164 USD/SEK 8.6404 USD/NOK 8.8500
US employment figures show 943K jobs were added in July, showing strength of recovery and beating estimates of 858K. June was also revised upwards from 850K to 938K and the unemployment rate dropped from 5.9% to 5.4%. US Treasury yields continue to rally adding strength to the greenback. Traders are betting on a quicker rate of Fed rate hikes following firm labor momentum.GBP
The pound fell as the dollar drove G-10’s direction on payroll beat. The Bank of England said continued work from home is driving a property price surge in the UK.EUR
Dollar drove direction for the EURUSD cross taking 0.3% away from the common currency. The euro crossed below 1.18 and nearby support is at 1.1751.CAD
The Canadian dollar continued to lose ground following US outperformance on employment data and as the Canadian economy added only 94K jobs, missing expectations of 150K.ASIA/PACIFIC
The Chinese yuan lost ground on strong dollar buying sentiment. Markets will focus on PBOC and Fed stances in the coming months.
The Australian dollar fell for the first time this week following the worsening delta variant outbreak in Sydney.
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