America’s Roundup: Dollar weakens ahead of U.S. Payrolls data, Wall Street ends mixed , Gold climbs, Oil edges lower, remains at a 14-month low

Market Roundup

• US  ADP Aug Nonfarm Employment Change99K, 144K forecast,122K previous            

•US Continuing Jobless Claims 1,838K,1,870Kforecast,1,868K previous                    

•US Initial Jobless Claims 227K,231K forecast,   231K previous

•US Jobless Claims 4-Week Avg. 230.00K,229.00K forecast,231.50K previous             

•US Nonfarm Productivity (QoQ) (Q2) 2.5%,2.3% forecast,0.2% previous             

•US Nonfarm Unit Labor Costs (QoQ) (Q2) 0.4%,0.9% forecast, 4.0% previous   

•Canada Labor Productivity (QoQ) (Q2) -0.2%,-0.1% forecast,-0.3% previous

•US Aug S&P Global Composite PMI 54.6, 54.1 forecast, 54.3 previous

•US Aug Services PMI 55.7,55.0  previous

•US Aug ISM Non-Manufacturing PMI 51.5 ,51.3 forecast,51.4            

•US Aug ISM Non-Manufacturing Prices 57.0 previous               

•US Crude Oil Inventories -6.873M, -0.600M forecast,  -0.846M previous

Looking Ahead Economic Data(GMT)                 

• 23:30 Japan Jul Household Spending (MoM)  -0.2% forecast,  0.1% previous    

• 23:30 Japan Jul Household Spending (YoY)  1.2% forecast,  -1.4% previous                        

•23:50 Japan Aug Foreign Reserves (USD)  1,219.1B previous     

•01:30 Australia Jul Home Loans (MoM) 1.0% forecast,  0.5% previous                   

•01:30   Australia Jul Invest Housing Finance (MoM)  2.7% previous                     

Looking Ahead Events And Other Releases (GMT)

•No Events Ahead

Currency Summaries

EUR/USD : The euro strengthened on Thursday as the dollar weakened ahead of Friday's U.S. jobs data, amid new signs of a softening labor market. Thursday’s data showed that U.S. private employers hired the fewest workers in 3.5 years in August, with July's figures also revised lower, suggesting a potential sharp slowdown in the labor market. This weak data did little to ease investor concerns as they awaited Friday’s U.S. non-farm payroll report for August, which is anticipated to provide clarity on the pace of Federal Reserve interest rate cuts at its September meeting. Economists are forecasting an increase of 160,000 jobs in August, up from 114,000 in July. Immediate resistance can be seen at 1.1118(38.2%fib), an upside break can trigger rise towards 1.1185(Aug 20th high).On the downside, immediate support is seen at 1.1039(50%fib), a break below could take the pair towards 1.0958 (61.8%fib).

GBP/USD: The pound held steady on Thursday as investors awaited U.S. employment data that could set the tone for currency markets  .Markets were edgy ahead of the release of the comprehensive nonfarm payrolls data  which will likely set the stage for the Federal Reserve to begin cutting rates later this month. On the data front, U.S. private employers added the fewest workers since January 2021, with the prior month’s data revised lower, suggesting a potential sharp slowdown in the labor market, according to the ADP National Employment Report. Sterling was last up 0.10 percent at $1.3154, some distance from last week's two-year high at $1.3269.Immediate resistance can be seen at 1.3200(38.2%fib), an upside break can trigger rise towards 1.3265(Aug 27th high).On the downside, immediate support is seen at 1.3092(38.2%fib), a break below could take the pair towards 1.3052(61.8%fib).

USD/CAD: The Canadian dollar held steady against the U.S. dollar on Thursday as investors awaited upcoming U.S. and Canadian jobs data, which could influence expectations for central bank interest rate cuts. Recent softening in U.S. labor market data has led some investors to speculate that the Federal Reserve might start its easing cycle with a substantial half-percentage-point rate cut later this month, rather than a smaller quarter-percentage-point reduction. Canada's employment report for August, due on Friday, is expected to show an increase of 25,000 jobs. The loonie was trading nearly unchanged at 1.3510 to the U.S. dollars, after trading in a range of 1.3504 to 1.3525. Immediate resistance can be seen at 1.3564 (50%fib), an upside break can trigger rise towards 1.3620 (61.8%fib).On the downside, immediate support is seen at 1.3499 (38.2% fib), a break below could take the pair towards 1.3430 (Lower BB).

  USD/JPY: The dollar extended its decline against yen on Thursday, reaching a one-month low, as ADP's August report revealed a lower-than-expected increase in private sector jobs.. ADP's private sector August jobs data showed fewer new jobs than anticipated. Thursday’s data showed U.S. private employers hired the fewest workers in 3-1/2 years in August while the July number was revised lower, potentially hinting at a sharp labor market slowdown.The weak data did little to calm investor jitters as they waited for Friday’s U.S. non-farm payroll report for August, which is expected to clarify how fast the U.S. Federal Reserve will cut interest rates at its September meeting. Economists are expecting 160,000 new jobs for August up from 114,000 in July. The dollar fell 0.3% to 143.35 against the Japanese yen, reaching a one-month low. Strong resistance can be seen at 145.32 (50%fib), an upside break can trigger rise towards 146.00 (Psychological level). On the downside, immediate support is seen at 142.79 (23.6%fib), a break below could take the pair towards 141.88 (Lower BB).

Equities Recap

European stocks fell on Thursday as mixed economic data raised concerns about global growth, overshadowing gains in interest rate-sensitive sectors.

UK's benchmark FTSE 100 closed down  by  0.34  percent, Germany's Dax ended down by 0.08 percent, France’s CAC finished the day down  by 0.92 percent.                               

The benchmark S&P 500 and Dow ended lower in volatile trading on Thursday, as a brief rally from economic reports faded and investors focused on key jobs data due on Friday. The Nasdaq closed slightly higher.

Dow Jones closed down  by  0.54% percent, S&P 500 closed down by 0.30 % percent, Nasdaq settled up  by 0.25%  percent.

Commodities Recap

Gold prices climbed to near one-week highs on Thursday, driven by a weaker U.S. dollar and lower yields after signs of a softening labor market led investors to anticipate a substantial rate cut from the Federal Reserve this month.

Spot gold was up 0.9% at $2,515.93 per ounce by 2:03 p.m. ET (1803 GMT), rising as much as 1.1% earlier in the session. U.S. gold futures settled 0.7% higher at $2,543.10.

Oil prices remained at a 14-month low on Thursday as concerns about demand in the U.S. and China, along with a likely increase in supplies from Libya, overshadowed a significant U.S. inventory draw and a delay in output increases by OPEC+ producers.

Brent futures were down 1 cent to settle at $72.69 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 5 cents, or 0.1%, to settle at $69.15.