WEEKLY MARKET REPORT 04/09-2020
The monthly US Labor Report is released later today (12:30 UK) and is keeping a lid on USD-pair price action. The US dollar has regained some composure after its multi-month sell-off but it remains to be seen if this recent pick-up is sustainable, especially if today’s job report disappoints. After 22 million jobs were lost between March and April, employment in the US has been picking up but this is now slowing down with this month’s expected 1.4 million job growth lower than July’s 1.76 million and June’s 4.79 million. If expectations are made today, the US payroll report would still show that 11 million people are without a job compared to pre-COVID-19 levels.
The Sterling Pound remains elevated against the US dollar despite increasingly gloomy EU/UK trade forecasts. The ongoing, and overriding message that neither side is willing to shift on major areas of concern – fisheries and level playing field commitments – suggests that a no-deal option at the end of this year may not be fully priced into Sterling-pairs.
If you are looking to buy or sell USD please get in touch to discuss your options and not to lose out further with the data coming out this afternoon.