Currency markets in limbo as key US jobs data awaited
Currency markets are trading in fairly narrow ranges this morning, with traders waiting for the reopening of US markets after yesterday’s Labour Day holiday and, more importantly, Friday’s unemployment and nonfarm payrolls numbers. The DXY index is up a touch at 101.75 as the Dollar trades at 1.1055 against the Euro, at 1.3128 against the Pound, and at 146.55 against the Yen. Today’s ISM manufacturing PMI will provide some clues as to how the US economy is performing after last week’s better-than-expected GDP number. EM currencies traded weaker yesterday, with the Rand hitting an intraday low of R17.93 before pulling back to close at R17.83. The Rand has opened softer this morning as risk sentiment sours and currently sits at R17.88. Look out for local Q2 GDP numbers out today. The lack of risk appetite can also be seen in global equity markets, with Asian stocks all in the red and US futures negative.
Commodity prices weaker ahead of US data
Gold is trading a touch softer at $2,494, while Platinum and Palladium are both just over 1.0% weaker at $918 and $966, respectively. Industrial metals have opened softer as well, with only Nickel currently showing any gains. The lack of any signs of a turnaround in the Chinese economy continues to fuel demand concerns for oil. Brent crude remains weak at $77.25 while WTI is trading below the $74.00 level.
