CFTC data for the week to Sep 1 show net short positions of CHF 22,876 contracts, GBP 49,575 contracts, EUR 24,925 contracts and JPY 92,227 contracts.

Allianz chief adviser El-Erian said the latest US jobs report shows strength on both demand and supply. Nonfarm payrolls rose to 162k, from a revised 21k and roughly three times market consensus. Labor force participation increased to 61.6% from 61.4%, a near one-year high. Unemployment held at 4.1%. Average hourly earnings rose 0.3% MoM, in line with expectations. These indicators point to a still-strong US labor market with firm demand and stabilizing supply.

Allianz chief economic adviser El-Erian said on US nonfarm payrolls day he expects August nonfarm payrolls to rise by 53,000 (July -23,000). He expects the unemployment rate to remain at 4.1%, labor force participation to tick up to 61.5% from 61.4%, and average hourly earnings to rise 0.3% MoM. He urged market attention to supply-side labor indicators.