Greenback ticks higher amid tapering expectations

10/08/2021

The USD was broadly higher on Tuesday, although gains have been small so far, with the EURUSD pair trading at fresh four-month lows at 1.1730.

Earlier on Monday, the US JOLTS job openings increased by 590,000 to a new record of 10.1 million. The US labor market is very hot, and employers cannot find enough employees, pushing wages higher.

Additionally, the Atlanta Fed President Raphael Bostic said yesterday he is eyeing the fourth quarter, if not earlier, for the start of a bond-purchase taper. At the same time, his colleague from Boston, Eric Rosengren, suggested September for the tapering announcement.

Later in the day, the German ZEW surveys are due, and they are expected to weaken notably, possibly undermining the EURUSD pair further. 

The nonfarm productivity and unit labor costs for the second quarter will be released during the US session, but these data rarely cause significant market movements.

Elsewhere, precious metals are trying to recover from yesterday's massacre, but gains are very mild as both silver and gold are up 0.3%. 

US stocks seem to be stumbling at previous all-time highs, and it looks like they need another bullish impetus to start a new leg higher. So far, their medium and short-term uptrends remain intact. 
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