The dollar was on course for its third consecutive weekly gain and is near its highest levels in decades against the euro this morning as investors were little inclined to sell ahead of the data release on employment in the United States, which could strengthen the case for an aggressive increase in interest rates from the Federal Reserve. Non-farm payrolls rose by 350,000 in August despite the near-recession in the United States. The unemployment rate rose despite more workers joining the labour force, the Bureau of Labor Statistics reported Friday.
Germany, until recently, bought more than half of its gas from Russia. Yet Europe's biggest economy is currently ahead of schedule in its race to fill underground storage facilities with gas to have enough fuel to keep homes warm in the colder months. Current gas storage facilities are 85% full and may well herald that Russia's dominance of EU energy supplies may soon be over.
Today also marks the last day conservative party members can cast their vote for the party leadership and for the new United Kingdom’s Prime Minister. The results will be announced Monday 5th of September when parliament resumes, with Johnson to announce his resignation the next day and the winner between finalists Liz Truss and Rishi Sunak to be appointed by the Queen shortly after.
Cable saw the dollar strengthen again yesterday. GBPUSD opened at 1.1597 and closed at 1.1547.
GBPEUR the pound recovered slightly on its recent losses yesterday with a +0.44% gain yesterday. The pair opened at 1.1554 and closed at 1.1602.
EURUSD saw the dollar strengthen ahead of today’s labour market announcements. The pair opened at 1.0037 and closed at 0.9952 marking a -1.04% loss for the European currency.