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America’s Roundup: Dollar jumps after U.S. job growth slows, Wall Street ends lower ,Gold retreats, Oil falls 3%, posts weekly drop on demand concerns-September 5th,2020

Market Roundup

•Nonfarm payrolls rises in August; unemployment rate dips

•Gold down 1.8% this week, silver 3%

•Platinum on track for biggest weekly decline since June

•Canada Aug Employment Change  275.0K forecast, 418.5K previous

•US Aug U6 Unemployment Rate 14.2%,  16.5% previous

•US Aug Average Hourly Earnings (YoY) (YoY) 4.7%, 4.5% forecast ,4.8% previous

•US Aug Participation Rate 61.7%, 61.4% previous

•US Aug Unemployment Rate8.4%, 9.8% forecast, 10.2% previous

•US Aug Average Weekly Hours 34.6, 34.5 forecast, 34.5 previous

•Canada Aug Participation Rate  64.6%, 64.6% forecast, 64.3% previous

•US Aug Government Payrolls 344.0K, 301.0K previous

•US Aug Unemployment Rate  10.2%,10.1% forecast, 10.9% previous

•US Aug Manufacturing Payrolls 29K,  50K forecast, 26K previous

•US Aug Nonfarm Payrolls 1,371K, 1,400K forecast, 1,763K previous

•US Aug Private Nonfarm Payrolls1,027K,  1,200K forecast, 1,462K previous

•US Aug Average Hourly Earnings (MoM) 0.4%,  0.2% previous

•Canada Aug Part Time Employment Change 40.0K, 345.3K previous

•Canada Aug Full Employment Change 205.8K, 73.2K previous

•Russia Aug CPI (MoM) 0.0%, -0.1% forecast, 0.4% previous

•Russia Aug CPI (YoY) 3.6%, 3.5% forecast, 3.4% previous

•Canada Aug Ivey PMI 67.8, 57.5 forecast, 68.5 previous

•Canada Aug  Ivey PMI n.s.a 64.6,  65.2 previous              

Looking Ahead - Economic Data (GMT)

•No data ahead

Looking Ahead - Economic events and other releases (GMT)

•No significant ahead

Currencies Summaries

EUR/USD: The euro declined against dollar on Friday as  investors bought greenback after the U.S. Labor Department reported job growth slowed further in August with financial assistance from the government virtually depleted, threatening the economy’s recovery from the COVID-19 pandemic. The safe-haven dollar’s bounce comes after weeks of losses. The greenback fell to an April 2018 low of 91.74 on Tuesday after the U.S. central bank overhauled its policy framework last week, which would allow it to keep rates lower for longer periods, a negative for the dollar. The euro was trading down 0.43% to $1.1837.Immediate resistance can be seen at 1.1876 (38.2% fib), an upside break can trigger rise towards 1.1942 (Higher BB).On the downside, immediate support is seen at 1.1783 (50% fib), a break below could take the pair towards 1.1731 (Lower BB ).

GBP/USD: Sterling fell against the dollar for the third day in a row on Friday, retreating from its recent highs, as the dollar strengthened and Brexit risks weighed on the pound. The dollar rebound has pushed cable down, from its eight-month high of $1.3481 on Tuesday to as low as $1.3181 on Friday. Pressure has also come from Brexit-related uncertainty and warnings from the Bank of England that the economic fallout from the coronavirus could be worse than expected. The losses accelerated on Friday towards the end of the Europe session, with cable at $1.3183 at 1441 GMT, down 0.7% since New York’s close. Immediate resistance can be seen at 1.3324 (5 DMA), an upside break can trigger rise towards 1.3450 (23.6% fib).On the downside, immediate support is seen at 1.3252 (38.2% fib), a break below could take the pair towards 1.3167 (21DMA).

USD/CAD: The Canadian dollar edged higher against its broadly stronger U.S. counterpart on Friday as domestic jobs data added to evidence of economic recovery, with the currency clawing back some of its prior day's sharp decline. Canada added 245,800 jobs in August, most of them full-time, and the unemployment rate fell to 10.2% as the economy continued to reopen from coronavirus shutdowns, Statistics Canada said. The loonie was trading 0.2% higher at 1.3104 to the greenback . The currency, which on Tuesday notched a near eight-month high at 1.2990, traded in a range of 1.3077 to 1.3140. Immediate resistance can be seen at 1.3115 (38.2% fib), an upside break can trigger rise towards 1.3178 (21DMA).On the downside, immediate support is seen at 1.3042 (Daily low), a break below could take the pair towards 1.2989 (23.6% fib).

USD/JPY: The dollar steadied against the Japanese yen on Friday as dollar continued to climb in the wake of the U.S. payrolls report.U.S. job growth slowed in August as financial aid from the government was depleted, with nonfarm payrolls increasing by 1.371 million jobs versus the climb of 1.734 million in the prior month. Expectations were for the addition of 1.4 million jobs. The unemployment rate fell to 8.4% from 10.2%. The U.S. dollar continued to recover from two-year lows hit earlier in the week and was poised for its best week since late April. Strong resistance can be seen at 106.84 (50%fib), upside break can trigger rise towards 107.00(Psychological level).On the downside, immediate support is seen at 106.11 (21DMA), a break below could take the pair towards 105.54  (38.2%fib).

Equities Recap

European shares ended lower in a wild trading session on Friday as technology stocks tracked losses on Wall Street, while merger talks between two major Spanish lenders lifted the banking index.

The UK's benchmark FTSE 100 closed down by 0.89 percent, Germany's Dax ended down by 1.65 percent, and France’s CAC finished the down by 0.89 percent.

Wall Street’s main indexes extended declines on Friday, with the Nasdaq on track for its worst two-day fall since March as technology stocks sold off again, overshadowing data showing a steeper-than-expected drop in the August unemployment rate.

Dow Jones closed down by 0.56 percent, S&P 500 ended down 0.81 percent, Nasdaq finished the day down by 1.27 percent.

Treasuries Recap

U.S. Treasury yields shot higher on Friday, propelled by a drop in the August unemployment rate and ahead of a big burst of supply next week. The benchmark 10-year yield was last up 9.1 basis points at 0.7131%.

Commodities Recap

Gold fell on Friday, reversing course as better-than-expected U.S. employment data bolstered the dollar, putting bullion on course for a weekly decline of 1.8%.

Spot gold  erased early gains to fall 0.2% to $1,927.04 per ounce by 1:51 p.m. EDT (1751 GMT). U.S. gold futures settled down 0.2% to $1,934.30 per ounce.

Oil prices fell more than 3% on Friday and posted their biggest weekly decline since June as fears of a slow economic recovery from the COVID-19 pandemic compounded worries about weak oil demand.

Brent crude  , the international benchmark, fell $1.41, or 3.2%, to settle at $42.66 a barrel. U.S. West Texas Intermediate (WTI)  fell $1.6, or 3.9%, to settle at $39.77 a barrel.

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