Market Roundup
• US Feb Average Hourly Earnings (YoY) 5.3%, 5.3% forecast, 5.4% previous
• US Feb Average Hourly Earnings (MoM) 0.2%, 0.2% forecast , 0.2% previous
• US Feb Average Weekly Hours 34.6, 34.9 forecast,35.0 previous
• US Exports 191.90B,184.20B previous
• US Imports 260.20B,252.30B previous
• US Feb Manufacturing Payrolls 21K,18K forecast , -10K previous
• US Feb Nonfarm Payrolls 379K, 182K forecast, 49K previous
• US Feb Participation Rate 61.4%,61.4% previous
• US Feb Private Nonfarm Payrolls 465K, 210K forecast, 6K previous
• US Feb U6 Unemployment Rate11.1%,11.1% previous
• US Jan Trade Balance -67.50B forecast, -66.60B previous
• US Feb Unemployment Rate 6.3% forecast, 6.3% previous
• Canada Jan Exports 51.19B,47.32B previous
• Canada Feb Ivey PMI 60.0,48.4 previous
• US Federal Budget -430.0B previous
• US Jan Consumer Credit 12.00B forecast, 9.73B previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Friday after data showed jobs growth beat expectations in February, backing up the view of Federal Reserve officials who have said that a recent rise in U.S. government bond yields is justified by an improving economic outlook. Nonfarm payrolls surged by 379,000 jobs last month, after rising 166,000 in January. In December, payrolls fell for the first time in eight months. Immediate resistance can be seen at 1.1982 (Daily high), an upside break can trigger rise towards 1.986 (38.2%fib).On the downside, immediate support is seen at 1.1895 (23.6%fib), a break below could take the pair towards 1.1800 (Psychological level).
GBP/USD: The British pound lost ground against a resurgent dollar on Friday, as currency traders took some risk off the table amid rising U.S. bond yields.U.S. Federal Reserve Chair Jerome Powell failed to soothe investor concerns about a recent surge in borrowing costs as he spoke at a Wall Street Journal forum on Thursday, pushing the safe-haven dollar higher. Sterling fell to a three-week low against the dollar, briefly dropping below $1.38. It was last down 0.6% at $1.3834. Immediate resistance can be seen at 1.3916 (23.6%fib), an upside break can trigger rise towards 1.4000(Psychological level).On the downside, immediate support is seen at 1.3799 (38.2%fib), a break below could take the pair towards 1.3710 (50%fib).
USD/CAD: The Canadian dollar edged higher against its broadly stronger U.S. counterpart on Friday, clawing back its earlier decline as oil prices climbed and data showed Canada's first trade surplus since May 2019.Canada posted a surprise trade surplus of C$1.4 billion in January, mostly on a sharp increase in exports, Statistics Canada said. Analysts had predicted a C$1.4 billion deficit. The price of oil, one of Canada's major exports, jumped after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand. U.S. crude prices were up 2.7% at $65.55 a barrel. Immediate resistance can be seen at 1.2737 (Daily high), an upside break can trigger rise towards 1.2781 (38.2%fib).On the downside, immediate support is seen at 1.2634 (23.6%fib), a break below could take the pair towards 1.2570(Daily low).
USD/JPY: The dollar rose to hit nine month high against the Japanese yen on Friday after data showed the United States added more jobs than expected in February and Federal Reserve Chair Jerome Powell expressed no concern about a sell-off in bonds. The Labor Department’s closely watched employment report on Friday showed at least 4.1 million Americans have been out of work for more than six months, accounting for 41.5% of the unemployed population in February. Another 3.5 million have permanently lost their jobs.The dollar reached a nine-month high of 108.63 yen , gaining 0.5% against the Japanese currency. Strong resistance can be seen at 108.48 (38.2% fib), an upside break can trigger rise towards 108.93 (23.6%fib).On the downside, immediate support is seen at 107.97(50%fib), a break below could take the pair towards 107.45 (61.8%fib).
Equities Recap
Rising U.S. bond yields put European equities under pressure again on Friday after Federal Reserve Chair Jerome Powell’s remarks failed to soothe investor concerns about a recent surge in borrowing costs.
UK's benchmark FTSE 100 closed down by 0.31 percent, Germany's Dax ended down by 0.97 percent, France’s CAC finished the day down by 0.82 percent.
Wall Street’s rose sharply higher on Friday after data showed faster-than-expected jobs growth in February, reinforcing bets on an economic rebound driven by massive fiscal stimulus and vaccination drives..
Dow Jones was last down by 1.13 % percent, S&P 500 was last down by 0.99 % percent, Nasdaq was last down by 0..32% percent.
Treasuries Recap
Yields on benchmark 10-year notes rose above 1.62% for the first time in a year, and were last at 1.5940%. Two-year Treasury yields rose to 0.1507%
Commodities Recap
Oil surges after OPEC+ extends cuts, strong U.S. jobs growth
Oil prices jumped about 3% on Friday, hitting their highest levels in over a year, following a stronger-than-expected U.S. jobs report and decision by OPEC and its allies not to increase supply in April.
Brent futures rose $2.10, or 3.2%, to $68.84 a barrel by 11:25 a.m. EST (1625 GMT). Earlier in the session, the global benchmark hit its highest since January 2020.
U.S. West Texas Intermediate (WTI) crude rose $1.87, or 2.9%, to $65.70 per barrel, after earlier scaling its highest since April 2019.
Gold fell to its lowest in nine months on Friday after better-than-expected U.S. employment data bolstered the dollar and U.S. Treasury yields, putting bullion on course for its third straight weekly decline.
Spot gold was down 0.1% at $1,695.22 by 11:50 a.m. ET (1650 GMT), after falling to its lowest since June 8 at $1,686.40 in the session. It has fallen nearly 2% this week. U.S. gold futures slipped 0.4% to $1,693.10.
