USD continues to recover ahead of US private sector jobs data

Mohammed Abdelkhalik
September 2, 2020

Ad Disclosure

USD Index Outlook: 2nd September 2020

USD rose in the European market on Wednesday against most of the world currencies, to continue its gains for the second day in a row from the lowest level in 29 months, thanks to strong data on the manufacturing sector in the United States, which boosted hopes for a speedy recovery of the largest economy in the world from Coronavirus crisis This comes ahead of the release of important data on US labour market, on private-sector jobs during August.

USD index rose by 0.5% to reach the level of 92.72 points, and the opening level of trading today was at 92.28 points, and the lowest level was recorded at 92.21 points.

The index ended yesterday’s transactions, up by 0.2%, in first gain within the last three days, after earlier in online trading, it had hit its lowest level in 29 months at 91.75 points.

USD Analysis - 2nd September 2020

In contrast to USD purchases at low levels, the dollar index rose after strong data on the manufacturing sector in the United States, which boosted hopes for a quick recovery of the US economy from Coronavirus pandemic.

USD rises before private jobs data

US Institute of Supply Management said on Tuesday that manufacturing activity in the country jumped in August to its highest level in nearly two years, thanks to an increase in new orders, as reading recorded a level of 56 points, which is the highest reading since November 2018, exceeding expectations. Experts are at 54.6 points, and July reading recorded 54.2 points.

AvaTrade Australia Investors await, later today, a number of important economic data from the United States, on private-sector jobs during August, these data provide strong indications about the pace of recovery of the largest economy in the world after easing restrictions imposed to limit the spread of  Coronavirus.

By 12:15 GMT, ADP index to measure new jobs in private sector in the United States, which is expected to add 1.250 million new jobs during August, compared with the addition of 0.167 million jobs in July.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.