Ella 
Here’s what you need to know on Friday, September 8:
A positive shift in risk sentiment early Friday made it difficult for the U.S. dollar (USD) to extend this week’s gains. Meanwhile, the 10-year Treasury yield continued its decline to 4.2% after snapping a four-day winning streak on Thursday. In early U.S. trading, market participants will be keeping a close eye on Canada’s August jobs report. U.S. economic reports ahead of the weekend will include changes in wholesale inventories and consumer credit for July.
The U.S. dollar index (DXY) hit a new multi-month high of 105.15 on Thursday after U.S. data showed that initial jobless claims in the United States fell to 216,000 from 229,000 in the week ended September 2. Meanwhile, the U.S. Bureau of Labor Statistics revised second-quarter unit labor costs to +2.2% from an initial estimate of +1.6%. The U.S. dollar index remained in negative territory below 105.00 in early trade on Friday, while U.S. stock index futures were trading in positive territory, pointing to improving risk sentiment.
USD/CAD climbed to near 1.3700, its highest level since late March on Thursday, but corrected downwards during the Asian session on Friday. Bank of Canada Governor Tiff Macklem noted in an economic progress report late Thursday that while monetary policy may be restrictive enough to restore price stability, policymakers remain concerned about the persistence of underlying inflation. to worry. “Inflation remains too high and there is insufficient momentum for underlying inflation to decline,” Marklem said. Canada’s unemployment rate is expected to rise to 5.6% in August from 5.5% in July.
Canadian employment report outlook: Unemployment rate will increase.
Data released by Japan earlier on Friday showed that Japan’s real gross domestic product (GDP) grew at an annual rate of 3.5% in the second quarter. Meanwhile, Japanese Finance Minister Shunichi Suzuki reiterated that they would not rule out any options against excessive currency volatility. USD/JPY remains under moderate bearish pressure during the Asian session after posting modest losses on Thursday, trading in negative territory around 147.00 early on Friday.
EUR/USD fell below 1.0700 for the first time in three months on Thursday, but recovered above that level in early trade on Friday. Germany’s Destatis consumer price index (CPI) remained unchanged in August at an annual rate of 6.1%.
GBP/USD found support during Friday’s Asian trading session and rose above 1.2500 after falling sharply over the previous three days. However, the pair failed to extend its rebound in early European trade and erased some of the day’s gains.
Gold prices posted modest gains on Thursday despite continued strength in the U.S. dollar. A pullback in yields helped gold/USD hold ground early on Friday, with the pair last trading around $1,925.
