Forex Today – US dollar falls ahead of important April employment statistics.
After reaching its highest level in three weeks above 100.40 on Thursday, the US Dollar (USD) Index falls to begin the European session on Friday. The US Bureau of Labor Statistics will release April employment data, including wage inflation, unemployment rate, and nonfarm payrolls figures. Earlier in the day, the European economic calendar will include preliminary Harmonized Index of Consumer Prices (HICP) data for April, the European Central Bank’s (ECB) preferred measure of inflation.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.39% | 0.08% | 1.13% | -0.38% | -0.31% | 0.42% | -0.12% | |
| EUR | -0.39% | -0.37% | 0.71% | -0.79% | -0.81% | 0.02% | -0.54% | |
| GBP | -0.08% | 0.37% | 1.10% | -0.41% | -0.46% | 0.38% | -0.16% | |
| JPY | -1.13% | -0.71% | -1.10% | -1.47% | -1.39% | -2.09% | -0.99% | |
| CAD | 0.38% | 0.79% | 0.41% | 1.47% | -0.05% | 0.80% | 0.26% | |
| AUD | 0.31% | 0.81% | 0.46% | 1.39% | 0.05% | 0.83% | 0.25% | |
| NZD | -0.42% | -0.02% | -0.38% | 2.09% | -0.80% | -0.83% | -0.54% | |
| CHF | 0.12% | 0.54% | 0.16% | 0.99% | -0.26% | -0.25% | 0.54% |
Despite conflicting macroeconomic data releases from the United States, the US dollar outperformed its rivals on Thursday, buoyed by increased confidence about a de-escalation of the US’s trade battle. The US Department of Labor announced that weekly initial jobless claims increased to 241,000 from 223,000 the prior week. Other data revealed that the ISM Manufacturing Purchasing Managers’ Index (PMI) fell to 48.7 in April from 49 in March, but still exceeded the market consensus of 48. Meanwhile, Bloomberg reported that China’s Commerce Ministry stated that the US has taken the initiative to express to China that the US hopes to engage about trade.
The EUR/USD fell for the third day in a row on Thursday before stabilizing over 1.1300 in the European morning on Friday. The annual HICP inflation rate in the Eurozone is expected to fall to 2.1% from 2.2% in March.
Gold fell by more than 1% on Thursday, approaching $3,200. XAU/USD recovers and gains approximately 0.5% on the day to around $3,250. GBP/USD fell 0.4% on Thursday to 1.3260. The pair keeps its ground in the European morning, trading near 1.3300.
How does Nonfarm Payrolls affect Gold?
Nonfarm Payrolls are often inversely associated with the price of gold. This means that higher-than-expected payroll figures will have a negative impact on the gold price, and vice versa. Higher NFP normally has a positive effect on the USD’s value, and gold, like other key commodities, is valued in US dollars. If the USD rises in value, it takes fewer dollars to buy an ounce of gold.
As the US dollar falls ahead of critical job statistics, traders utilizing advanced prop firm technology are actively monitoring market moves and adjusting their plans in real time.