The US Dollar was broadly higher despite a shift in sentiment as markets await today's release of US labor data. Analysts recently polled are predicting that non-farms payrolls for the month of July will show a major decline in private sector hirings, with estimates at 1.6 million, far fewer than June's 4.8 million. Average hourly earnings are also likely to show a decrease to 4.2% on an annualized basis, while the labor force participation rate is predicted to have fallen to 61.1%. If those numbers are realized, that will reinforce investors' fears that the economic momentum is waning. Analysts blame several factors including the numbers of Covid-19 infections, the absence of consensus from the US Senate in regards to additional stimulus, and the steady fall in yields of US Treasury instruments.
In Tokyo trading, as of 10:06 am, the EUR/USD was trading at $1.1872, down 0.0589% and off the earlier peak of $1.18837. The GBP/USD was lower at $1.3135, down 0.0464%, with the pair ranging from a low of $1.31306 to a peak of $1.31586. The USD/JPY was higher at 105.5600 Yen, up 0.05% and off the session high of 105.600 Yen.
Canadian Labor Data Likely Mixed Bag
Labor data from Canada is also due out later today. Analysts are forecasting a decline in the unemployment rate to 11% from 12.3%. The net change in employment is predicted to be 400,000, well below the nearly 953,000 in the previous period; analysts are forecasting a rise in the participation rate to 64.4% from 63.8%. Canada and the US mutually agreed to close the borders to all but those individuals deemed essential. The Canadian government has a more stringent strategy in place to minimize the Coronavirus infection rate. Currently, the USD/CAD is trading at C$1.3313, up 0.06%.