Wonderful Introduction:
If the sea loses the rolling waves, it will lose its majesty; if the desert loses the dancing of flying sand, it will lose its magnificence; if life loses its real journey, it will lose its meaning.
Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Analysis]: The US dollar breaks through the 100 mark, and the heavy data is stofoco.coming tonight!". Hope it will be helpful to you! Original content is as follows:
Earlier Friday, August 1, the market turned calm, and investors assessed the latest headlines around the U.S. trade system while preparing for a July job report that will include non-farm employment, unemployment rate and wage inflation data. The European Economic Calendar will provide euro zone inflation data, and later that day, ISM will release the U.S. manufacturing purchasing managers index report for July.
The U.S. dollar index continued to rise after an impressive rebound on Wednesday and rose for the sixth straight day. The index rose nearly 2.5% this week and is expected to hit its biggest weekly gain since September 2022. The White House announced late Thursday that the U.S. would set a benchmark tariff rate of 10%. Meanwhile, U.S. President Donald Trump signed an executive order to raise tariffs on Canadian imports from 25% to 35%, while extending the current trade agreement with Mexico for 90 days. In the early European session, the US dollar index was still in the consolidation stage around 100.00, with U.S. stock index futures falling 0.3% to 0.4%. The number of non-farm employment in the United States is expected to increase by 110,000 in July.
Canadian Prime Minister Mark Carney said they were disappointed with the new U.S. tariff rate. “While negotiations with the United States continue, Canada is focused on things we can control; that’s in the “Build Canada Powerful” movement,” he added. The U.S. dollar/Canadian dollar rose in early Friday, trading at its highest level since the end of May, above 1.3860.
After a three-day sharp decline, the euro/dollar gained a foothold on Thursday and closed almost flat. The pair remained at 1.140 in early European session0The consolidation stage above.
The GBP/USD continued its weekly decline on Thursday and closed in a negative area. The pair struggled to gather recovery momentum earlier on Friday and fluctuated around 1.3200.
The US dollar/yen rose nearly 1% on Thursday, climbing above 150.00 for the first time since early April. The pair remained relatively calm during the European period and traded around 150.50. Japanese Finance Minister Katsunobu Kato expressed shock at foreign exchange trends on Friday, including those driven by speculators. Kato further said he needs to pay close attention to the impact of the U.S. tariffs on exports.
Oil prices remained basically the same after falling 1% on the previous trading day. U.S. crude rose 0.1% to $69.36 a barrel, while Brent crude rose 0.1% to $71.80 a barrel. Spot gold rose slightly to $3,294.
Euro: The intraday bias of the euro/dollar is still in a downward trend. The decline from 1.1829 is seen as a correction to rebound from 1.0176. It further fell to the 38.2% retracement level of 1.0176 to 1.1829, at 1.1198. On the plus side, breaking through the 1.1502 small resistance level will first turn neutral.
The above content is about "[XM Foreign Exchange Market Analysis]: The US dollar breaks through the 100 mark, and the heavy data is stofoco.coming tonight!" is carefully stofoco.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues: