Non-farm payrolls…the doom and gloom of the dollar?

The greenback added to weekly lows and breached the key 101.00 barrier on the back of persistently low US yields across the curve and continued speculation of a potential half-point interest rate cut by the Fed.

Here’s what you need to know on Friday, September 6:

The US dollar index (DXY) added to earlier losses and tested the 101.00 support amid growing caution ahead of Friday’s US jobs report. Crucial non-farm payrolls and the unemployment rate will be released on September 6, along with the Williams speech from the Fed (New York).

EUR/USD built on Wednesday’s gains and recovered the 1.1100 barrier and beyond amid a continued downtrend in the US dollar. German trade balance and industrial production results are due on September 6, followed by the third estimate of second-quarter GDP growth and final data on employment changes in the wider euro area.

GBP/USD continued to rally in line with the rest of its risk peers, approaching the key 1.3200 hurdle amid persistent dollar weakness. On September 6, the Halifax house price index along with the BBA mortgage rate.

USD/JPY retreated to fresh four-week lows after falling below key support at 143.00 on the back of a weaker dollar, lower yields and dovish remarks from a BoJ official. Household spending data and the preliminary Coincident Index and Leading Economic Index will be released on September 6.

AUD/USD rebounded further, holding trade above the key 0.6700 barrier, on the back of greenback selling pressure, a rebound in commodity prices and a cautious tone from RBA Bullock. Home loans and home investment loans will be revealed on September 6.

In a fairly volatile day, WTI prices touched a new 2024 low near $68.80, although they regained some upward momentum later in response to positive news from OPEC+ as well as a report bullish on weekly US crude inventories from the EIA.

Gold prices climbed above $2,520 a troy ounce, adding to Wednesday’s advance amid downward pressure on the US dollar and falling US yields. Silver rose to weekly highs, breaching the $29.00 per ounce mark and flirting with the intermediate 55-day and 100-day SMAs.