USD Exchange Rate Edged Higher ahead of the Nonfarm Payrolls

On Wednesday, the USD exchange rate edged higher as investors turned their attention to the release of the American nonfarm payrolls on Friday. 

Accordingly, the US dollar index, which tracks the greenback against a basket of other currencies, climbed 0.35% to $94.31.

Moreover, the forecasted September nonfarm payrolls extended to 473,000 jobs from the previous number of 235,000. 

Remarkably, a significant miss on the market’s expectation could dampen the USD exchange rate. 

In addition, traders also kept an eye close to the reports of the ADP private payrolls later this day.

Subsequently, the estimated ADP Nonfarm Employment Change hiked to 428,000 from the last figure of 374,000. 

Meanwhile, the euro to dollar exchange rate plummeted 0.40% to $1.16, near its 14-month low.

The decline came after the Eurozone retail sales slightly strengthened 0.30% from the July data of -2.60%.

However, the figure was lower than the analysts’ expectation of 0.80%, pulling the single currency. 

Consequently, the safe-haven yen modestly increased 0.08% to $111.57 as the US Treasury yields advanced. 

The 10-year yields escalated 0.01 points to $1.55% as the 30-year bonds hiked to 2.11%, hitting a 3-month high. 

Moreover, the positive speech of Bank of Japan Governor Haruhiko Kuroda contributed to the recent uplift in the yen.

Whereas, he mentioned that the local economic recovery strengthened because of the upbeat exports. 

Inversely, the risk-sensitive Aussie declined 0.88% or $0.72. It is affected by the concerns on China’s slowed economic growth, which is the leading market for Australian exports. 

Similarly, Kiwi sharply plunged 1.18% or $0.69 as the Reserve Bank of New Zealand extended its cash rate to 0.50%.

GBP to USD Exchange Rate Fell while USD Hiked

Furthermore, the Pound sterling retreated from its consecutive gains as it diminished 0.50% to $1.36. At the same time, it held below its three-week peak on the euro.

In line with this, the British construction purchasing managers index (PMI) reduced to 52.60 points from the previous 55.20.

Correspondingly, the PMI dwindled from the market forecast of 54.00%, which weighed down the GBP. 

Then, UK second-quarter labor productivity, which measures labor efficiency changes, will be available on Thursday.  

On the other hand, the Swiss franc inched up 0.19% to $0.93, following its surge of 0.41% yesterday. 

Subsequently, investors looked forward to the posting of Switzerland’s unemployment rate tomorrow. 

At the same time, the Canadian dollar improved 0.43% or $1.26, sitting near a one-month peak.