Ella 
Here’s what you need to know on Wednesday (August 2):
The dollar held on to its mid-week gains as market sentiment remained cautious. U.S. stock futures fell between 0.35% and 0.75% in early European trading, while the U.S. dollar index rose slightly above 102.00. During the North American session, the US will release ADP private sector employment data for July.
U.S. data on Tuesday showed business activity in the manufacturing sector continued to shrink in July, with job vacancies falling to 9.58 million in the final business day of June. Although the US dollar index retreated from multi-week highs, it touched levels above 102.40 after the data and closed higher. At the end of the North American session, the global rating agency Fitch downgraded the credit rating of the US government from AAA to AA+, citing the deterioration of the fiscal situation in the next three years and the growth of the overall government debt burden at a high level.
In Asia on Wednesday, the minutes of the Bank of Japan’s June meeting showed that policymakers shared their view that adjustments to the yield curve control (YCC) policy are not necessary at this time. Meanwhile, BOJ Deputy Governor Shinichi Uchida reiterated that it is important for the BOJ to patiently maintain its accommodative policy. After rising nearly 3% in the three-day rally, USD/JPY is now under fresh selling pressure and is now down 0.5% to around 142.60. While the BoJ’s tone is dovish, the yen appears to be benefiting from risk aversion.
Data from New Zealand on Wednesday showed that the unemployment rate rose to 3.6% in the second quarter from 3.4%. Meanwhile, employed participants rose from 72% to 72.4%, and the employment cost index rose 1.1%. NZD/USD extended losses in Asia and is currently trading at a one-month low near 0.6100.
EUR/USD rose above 1.1000 in Asia, but retreated below that level in early European trading.
GBP/USD closed below 1.2800 on Tuesday for the first time in three weeks. The exchange rate remained calm on Wednesday.
Affected by rising U.S. bond yields, gold prices turned lower and fell towards $1,940. Gold prices held steady around $1,940, consolidating losses around $1,950.
Bitcoin rebounded after falling below $28,500, but lost momentum after testing $30,000. Ethereum was close to $1,800 on Tuesday and turned up in the second half of the day. However, it was difficult for Ethereum to extend its rebound against the US dollar on Wednesday, trading in a negative area around $1,850.
