Dollar Rallies; Euro and Yen Slide
The US dollar strengthened against almost all major currencies during Thursday's trading (August 6). The dollar index rose approximately 0.26%, edging back toward the 100 level, supported by robust US labor market data and rising oil prices.
Weekly jobless claims came in at 199,000, lower than the forecast of 202,000. Meanwhile, the number of planned layoffs fell to 33,429 in July—the lowest level in two years. These figures indicate that the US labor market remains solid ahead of the Nonfarm Payrolls (NFP) release.
The dollar's strength weighed on the euro, with the EUR/USD pair dropping about 0.27% to the 1.1500 area. The British pound also weakened slightly, trading around 1.3450 (GBP/USD) amid a lack of fresh sentiment from the UK.
Against the yen, the dollar rose approximately 0.39% to the 158.40 level. The USD/JPY pair continued its recovery following a dip caused by currency intervention the previous week. Meanwhile, the AUD/USD pair weakened by about 0.36% to 0.7030 ahead of the release of Chinese trade data.
WTI oil prices surged roughly 3% to US$77 per barrel following reports that vessels owned by the US, Israel, and nations hostile to Iran could be barred from passing through the Strait of Hormuz. This situation reignited inflation concerns and pressured gold prices down to around US$4,243, after they had previously breached the US$4,300 mark.
Newsmaker Analysis: Market focus is now centered on the NFP report, with an expected gain of 80,000 jobs. However, wage growth data will be a key area of interest. Strong wage figures could boost the dollar while pressuring the euro, pound, yen, Australian dollar, and gold. Conversely, weak labor data could trigger a decline in the dollar and pave the way for gains in other major currencies. (arl)
Source: Newsmaker.id
