The U.S. Dollar is trading in stronger ranges at the moment following data revealing fewer private payrolls than expected.
Overview
Indeed, ADP Employment Change showed that August experienced a gain of just 54K jobs instead of 68K expected for the month. Additionally, Initial Jobless Claims are also painting a picture of struggle with more individuals seeking jobless benefits. Later at 9:45AM, we get the S&P Global US Purchasing Managers Index, which is expected to be very much on the expansionary side. Anything less could cause a turnaround against the Buck.
With the anticipation of tomorrow’s non-Farm Payrolls, the FX needle will likely be influenced by other headlines. On the automotive side, U.S. brands such as General Motors are starting to dismantle EV-vehicle production lines as the government incentives disappear along with dwindles customer demand. Meanwhile, Mexico could expand oil and natural gas production. We shall see if volatility starts jumping a bit.
What to Watch This Week…
- Euro-zone GDP, Friday
- US Nonfarm Payrolls, Friday 8:30AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇓
The Euro is mostly flat against the Buck but looking to tilt negatively as July data disappointed. Retail Sales failed to advance and in fact contracted by (-0.5%), which basically erased the progress seen in consumption throughout June. The inconsistency is hurting the economy, but it is not yet increasing chances that the European Central Bank will jump back on the path of lowering interest rates. Tomorrow we will have key data releases in the form of Gross Domestic Product growth for the second quarter of the year.
MXN ⇓
The Mexican Peso is slightly down as data today gave mixed signals and the U.S. labor sector looks like dealing with turbulence. Today’s release of June Gross Fixed Investment showed that the negative trend of pulled investments continues with a (-6.4%) drop. Meanwhile, Private consumption rose in June by 1.6% which made up for really poor figures back in May. It seems the Mexican economy’s progress is halting after a period of rapid growth from “Nearshoring.” For now, Banxico is being presented with economic indicators that could use some aid so September 25th may result in another 25-basis-point cut and may depreciate Peso further.
