07:48 AM EDT, 09/03/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Tuesday, except for a decline versus the yen, after the long holiday weekend as markets now turn their attention to the August employment data.

With the Federal Reserve now putting more emphasis on weakness in employment, a second straight soft report this Friday would tip expectation toward a larger rate reduction at the Sept. 17-18 meeting. Quiet period ahead of the Sept. 17-18 Federal Open Market Committee begins on Saturday, so there is the possibility of comments from Fed officials after the report on Friday.

Starting off the shortened week, S&P Global is due to release its manufacturing reading for August at 9:45 am ET, followed by the ISM's manufacturing reading for August at 10:00 am that the same time as construction spending data for July and the RealClearMarkets consumer sentiment reading for September.

Highlights on Wednesday include ADP private payrolls, job openings and hiring data and the Fed's Beige Book.

Challenger layoffs, weekly jobless claims, revised productivity and labor costs, and services readings are due for released on Thursday.

After the employment report on Friday, the St. Louis Fed is due to release an update to the GDP nowcast estimate.

A quick summary of foreign exchange activity heading into Tuesday:

EUR/USD fell to 1.1035 from 1.1072 at the Monday close and 1.1067 at the same time Monday morning. There are no Eurozone data on Tuesday's schedule. The next ECB meeting is scheduled for Sept. 12.

GBP/USD fell to 1.3121 from 1.3147 at the Monday close and 1.3136 at the same time Monday morning. There are no UK data on Tuesday's schedule. The next Bank of England meeting is scheduled for Sept. 19.

USD/JPY fell to 145.9138 from 146.8849 at the Monday close and 146.8150 at the same time Monday morning. Overnight, Bank of Japan Governor Kazuo Ueda repeated his previous comments that the BOJ will raise interest rates further if the Japanese economy evolves as expected, according to Bloomberg. There were no Japanese data released on Tuesday. The next Bank of Japan meeting is scheduled for Sept. 19-20.

USD/CAD rose to 1.3540 from 1.3493 at the Monday close and 1.3496 at the same time Monday morning. Canadian manufacturing PMI for August is set to be released at 9:30 am ET. The next Bank of Canada meeting is scheduled for Wednesday, when the BOC is expected to lower its target rate to 4.25% from 4.50%.