Investors cautious ahead of US nonfarm payrolls - 7.7.2023

The Dollar weakening is intact currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.4% Thursday while the Department of Labor data showed the number of Americans who sought unemployment benefits over the last week was higher than the forecast while their number rose.

Both GBP/USD and EUR/USD reversed their retreating on Thursday despite data from the German statistics office Destatis showing German industrial production declined in June. Pound is higher against the Dollar currently while euro is lower. USD/JPY reversed its climbing while AUD/USD continued its sliding yesterday with both the yen and the Australian dollar higher against the Greenback currently.

US stock indexes futures are down currently ahead of June nonfarm payrolls report at 14:30 CET today as the yield on benchmark 10-year Treasury notes rose to 4.038%. The three main stock benchmarks ended lower on Thursday in the range of -1.1% to -0.8% after payroll firm ADP data indicating the US economy added 497,000 jobs last month, more than double the expected number.

European stock indexes are retreating currently after closing sharply lower on Thursday with travel and leisure shares leading losses. Asian stock indexes futures are down today with Australia’s All Ordinaries index leading losses while data showed Japanese wages rose at their fastest pace in 28 years in May.

Brent is edging higher currently. Prices ended mixed yesterday following data from the Energy Information Administration that showed US crude stockpiles fell by above expected 1.5 million barrels last week. The US oil benchmark West Texas Intermediate (WTI) added one cent and is higher currently. Brent crude declined 0.17 to $76.52 a barrel on Thursday.