Forex Today: Dollar remains strong, risk-off mounts - FXStreet

Here is what you need to know on Monday, September 7:

The American dollar closed the week with gains against most major rivals, despite shedding some ground ahead of the weekly close.  

US employment figures for August came in mixed. the country recovered 1.37 million jobs in August, slightly below the 1.4 million expected. Still, almost 300K of those positions were temporal government positions and those workers are scheduled to be laid off at the end of September. The unemployment rate, however, improved to 8.4% much better than the previous 10.2%, while the Labor Force Participation Rate increased by 61.7%.

Later on Friday, Fed’s Chairman Powell said that the pace of jobs growth is rising faster than expected, but reiterated that it may take years before the economy recovers in full, signaling that rates will remain low for a long time. Boston Fed’s Rosengren, also on Friday, noted that the US is still in a “very significant recession,” despite the recovery in employment data.

EUR/USD held above 1.1800 but remained under selling pressure. GBP/USD settled above 1.3200, although it’s also at risk of extending its slide in the upcoming sessions.

The Canadian dollar managed to post a modest weekly advance against the greenback, following news that Net Change in Employment in Canada rose by 245,800, compared to analysts' estimate of 275,000, in August and brought the Unemployment Rate down from 10.2% in August from 10.9% in July.

Over the weekend, market talks revived an old concern. The Global Times reported that China may gradually cut its holdings of US Treasury bonds, amid persistent tensions between the two economies. It’s just speculation but could weigh on the market’s mood at the beginning of the week.

 Gold flirted with 1,910 at the end of the week, ending it in the red at $1,933 a troy ounce. Crude oil prices broke their range to the downside, with WTI settling at $39.50 a barrel. 

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https://www.fxstreet.com/news/forex-today-dollar-remains-strong-risk-off-mounts-202009061301

2020-09-06 00:00:00Z
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