USD Weekly Forecast – More Weakness For The Dollar?

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It’s NFP week, yo!

Can labor market numbers turn things around for the Greenback?

Check out the potential catalysts that might affect the dollar’s price action this week!

Closely watched economic releases

ISM manufacturing PMI (Sept 1, 2:00 pm GMT) to accelerate from 50.9 to 53.6 in August
Factory orders (Sept 2, 2:00 pm GMT) seen slowing down from 6.2% to 5.4%
Trade deficit (Sept 3, 12:30 pm GMT) to widen from $50.7B to $59.0B as imports outpace exports

The economy added a net of 1.76M jobs in July, lower than the 4.8M jump in June
The unemployment rate also eased from 11.1% to 10.2%
The positive report, along with concerns over the U.S.-China geopolitical tensions and a lack of agreement between Democrats and White House officials over the next stimulus bill boosted USD higher until the week ended
Markets see the economy creating another 1.49M jobs in August
The unemployment rate could’ve gone down in 9.9% for the month
Average hourly earnings to slow down from 0.2% to 0.1%?

ADP report (Sept 2, 12:15 pm GMT) to gain another 1M jobs in August?
Challenger job cuts (Sept 3, 11:30 am GMT) seen at 149K (from 263K)
ISM’s non-manufacturing PMI (Sept 3, 2:00 pm GMT) to reflect a slowdown (from 58.1 to 56.5)

Powell’s show of commitment to low rates last week and the start of a new month could inspire risk-taking in the markets and weigh on the safe-haven dollar
PMI reports from around the globe will give hints on the pace of global economic recovery and affect the appetite for the dollar

The dollar weakened against ALL of its major counterparts in August, with the heaviest losses seen against AUD and CAD

Stochastic considers the dollar “oversold” against NZD, GBP, CAD, and AUD on the daily time frame

The dollar saw the most volatility against NZD, JPY, AUD, and GBP in the last seven days