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US Dollar Rises Early Friday Ahead of August Employment Data

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The US dollar rose against its major trading partners early Friday, except for a decline versus the pound, ahead of the release of August employment data at 8:30 am ET.

Nonfarm payrolls are expected to rise by 55,000 after a decline of 23,000 in July, while private payrolls are expected to increase by 50,000 after rising by 30,000 in each of the last two months.

The unemployment rate is forecast to remain at 4.1%, and hourly earnings are expected to rise by 0.3% after a 0.1% gain.

Later in the day, the St. Louis Federal Reserve is expected to update its GDP nowcast estimate for Q3 around midday.

A quick summary of foreign exchange activity heading into Friday:

EUR/USD fell to 1.1621 from 1.1628 at the Thursday US close but was above a level of 1.1610 at the same time Thursday morning. Eurozone construction PMI declined in August, while a drop in Eurozone retail sales in July slowed the year-over-year growth rate, data released earlier Friday showed. The next European Central Bank meeting is scheduled for Sept. 10.

GBP/USD rose to 1.3538 from 1.3527 at the Thursday US close and 1.3493 at the same time Thursday morning. UK construction PMI declined in August while UK car registration growth accelerated in August, according to data released earlier Friday. The next Bank of England meeting is scheduled for Sept. 17.

USD/JPY rose to 156.2961 from 155.7771 at the Thursday US close and 156.2042 at the same time Thursday morning. UK household spending rebounded in July after a decline in the previous month, but the year-over-year rate of decline accelerated, according to data released overnight. The next Bank of Japan meeting is scheduled for Sept. 17-18.

USD/CAD rose to 1.3809 from 1.3784 at the Thursday US close and 1.3802 at the same time Thursday morning. Canadian employment data for August are due to be released at 8:30 am ET, while the Canada IVEY PMI report for August is due to be released at 10:00 am ET. The next Bank of Canada meeting is scheduled for Oct. 28.

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