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US payroll data to be the focus of the week
Bloomberg forecasts 155,000 new jobs in August, with unemployment expected to dip from 4.3% to 4.2%.
US payroll data is the key focus this week, with markets closely monitoring job figures for signs of potential Fed rate cuts.
The dollar reached a two-week high against the euro, with EUR/USD near 1.1059 ahead of the jobs report.
Oil prices fell as OPEC+ plans to increase production by 180,000 bpd in October.
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Bloomberg projects that the US economy could add 155,000 jobs in August, with other market estimates hovering around 165,000. Unemployment is expected to dip slightly from 4.3% to 4.2%.
Markets will closely watch these figures to gauge whether the Federal Reserve might opt for a 50-basis point interest rate cut instead of the 25 basis points currently anticipated.
In Currencies
The dollar rose to a two-week high against the euro, the EUR/USD was last seen hovering close to 1.1059 as markets stay cautious ahead of key US employment data.
The pair's daily retreat coincided with a broad rebound in US yields across the curve amid ongoing speculation about potential rate cuts by the Fed next month.
French Final Manufacturing rose for the month of August at 43.9 higher than estimates at 42.1 while the German Final Manufacturing PMI indicated that recession continued to deepen at 42.4 vs 42.1 expected.
The latest HCOB PMI survey, revealed steep and accelerating drops in new orders, purchasing activity, and employment in August in Germany's manufacturing sector.
In Commodities
Oil extended losses as markets factor in higher production from OPEC+ starting October. Brent fell this morning and was last seen near $76 while WTI was near $72.
A few OPEC+ members are set to increase production by 180,000 barrels per day (bpd) in October, as part of a strategy to start easing their latest round of output cuts totaling 2.2 million bpd, while maintaining the remaining cuts until the end of 2025.
Although the Caixin Manufacturing PMI from China was slightly higher than anticipated, it still portrayed sluggish demand and production activity and continued to weigh on oil prices.
