Forex Major Currencies Outlook (Sep 04, 2017)

The economy added 156K jobs in August versus the estimated 180K gain, bringing the unemployment rate up from 4.3% to 4.4%. However, the ISM manufacturing PMI beat expectations with a rise from 56.3 to 58.8. US banks are closed for the Labor Day holiday today.

EUR

The euro weakened against most of its counterparts on recent talks about euro strength being damaging to the economy. Data was mixed on Friday, with Spanish manufacturing PMI falling short of expectations. The Spanish unemployment change and Sentix investor confidence are up for release today and upbeat data could keep the shared currency afloat.

GBP

The pound was able to end the week strong as it recovered from Brexit jitters. UK manufacturing PMI beat expectations by climbing from 55.3 to 56.9 versus the estimated 55.0 figure. The construction PMI is due today and a rise from 51.9 to 52.1 is eyed, but stronger than expected results could mean more pound gains.

CHF

The franc regained ground against its peers at the start of the week on risk aversion stemming from North Korea's missile test. Swiss manufacturing PMI beat expectations as it rose from 60.9 to 61.2, higher than the projected 60.4 figure. There are no reports due from the Swiss economy today so market sentiment could push franc pairs around.

JPY

Yen pairs gapped down over the weekend on reports that North Korea launched another missile test and that South Korea is conducting its own as well. Continued jitters over a potential war scenario could keep the yen supported while signs that the tension is fading could force the safe-haven currency to retreat. There are no major reports due from Japan today.

Commodity Currencies (AUD, NZD, CAD)

The comdolls started off on a weak note as risk appetite tanked on North Korea's latest missile launch test. Australia's AIG manufacturing index rose from 56.0 to 59.8 while commodity prices advanced 20.1% year-over-year. Company operating profits, however, fell 4.5% for Q2. Canadian banks are also closed for Labor Day today.

By Kate Curtis from Trader's Way