Note: Updated at 11:00am to reflect a shift in the US dollar’s direction.
The dollar is recovering from earlier this morning as investors digested August’s job report. Nonfarm payrolls showed 151,000 jobs were created in August, which was below analyst expectations of 180,000. This comes after yesterday’s disappointing news from the Institute for Supply Management that US manufacturing levels contracted for the first time in six months. These recent reports are giving investors pause as the US economy has mostly been displaying strength from a string of previous reports.
Across the Atlantic, the pound is climbing for a second day on the UK’s stronger-than-expected construction activity for August. Sterling was also the strongest performer in the G10 yesterday after investors reacted to the largest month-on-month jump in UK manufacturing levels in at least 25 years. The latest good news has surprised investors who had believed the UK would be suffering more at this point from uncertainty brought upon by the Brexit vote.
The euro is trading lower against the stronger US dollar, even with stronger-than-expected Eurozone producer inflation growth and Italian Q2 GDP growth.
The Australian dollar is up slightly with no new data out. The Canadian dollar is also up as oil prices jumped past $44 per barrel.
EURUSD: The euro is trading lower against the rising dollar even after better-than-expected Eurozone inflation and Italian Q2 GDP growth.
GBPUSD: The pound is climbing again as construction activity in August beat analyst expectations.
AUDUSD: The Aussie dollar is up slightly with no new data out.
USDCAD: The Canadian dollar is up as oil prices tick higher.