The headline of the day will be the US labor market data. Investors anticipate 870,000 new jobs, according to the NFP for July, somewhat higher than 850,000 in June. The unemployment rate is expected to improve to 5.7% from 5.9% previously.
Additionally, the Canadian labor market figures will be released as well. The unemployment rate is also forecast to improve - 7.4% versus 7.8% in the previous months. At the same time, the Canadian economy will have most likely created 177,000 new jobs in July, down from 230,000 in June.
If the NFP number is strong, we could see a broad USD rally amid expectations of tightened monetary policy sooner than later. And vice versa.
Stocks will most likely rally no matter what, as that is their usual behavior, while precious metals should decline after strong data but rally if the data will be weaker than expected.
Yesterday, the Bank of England kept its interest rate unchanged at 0.10%, with other policy settings unchanged. The GBPUSD pair moved higher after the decision and jumped back above 1.39.