US Dollar, EUR/USD, GBP/USD, AUD/USD Talking Points:
- Tomorrow brings Non-farm Payrolls out of the United States, with the expectation for 750k jobs to have been added in the month of August.
- The US Dollar[1] has continued to fall, setting another fresh three-week-low in the process.
- The analysis contained in article relies on price action[2] and chart formations[3]. To learn more about price action or chart patterns, check out our DailyFX Education[4] section.
We’re now into September and that means its time for Non-farm Payrolls[5]. This should be a widely-watched report as last week’s Jackson Hole Economic Symposium helped to push some pressure on this data release. Jerome Powell remarked last Friday that the US economy has met the mark regarding the Fed’s ‘significant further progress’ in terms of inflation, but not yet on employment.
If the Fed is, in fact, going to begin tapering asset purchases in 2021, they’re running out of time. There’s two more quarterly rate decisions in which the Fed will furnish updated guidance and traditionally this has been the type of meeting where they’ll make major announcements. These are set to take place in September and December; so tomorrow’s NFP[6] report will be the last such report that the Fed gets to see ahead of that September rate decision.
To learn more about NFP[7], check out DailyFX Education[8]
Ahead of the release, the US Dollar has continued to fall, furthering the recent downtrend as prices have re-engaged with support in the 92.19-92.26 spot on the DXY chart.
US Dollar Four-Hour Price Chart
Chart prepared by James Stanley[9]; USD, DXY on Tradingview[10]
