Market Roundup
• U.S. economy adds 130,0000 jobs in August
• Average hourly earnings gained 0.4%
• US Aug Nonfarm Payrolls 130K,160K forecast, 159K previous
• US Aug Government Payrolls 34.0K, 28.0K previous
• US Aug Manufacturing Payrolls 3K, 8K forecast, 4K previous
• US Aug Average Hourly Earnings (YoY) (YoY) 3.2%, 3.1% forecast, 3.3% previous
• US Aug Average Hourly Earnings (MoM) 0.4%, 0.3% forecast, 0.3% previous
• US Aug Average Weekly Hours 34.4, 34.4 forecast, 34.3 previous
• US Aug Government Payrolls 34.0K, 28.0K previous
• US Participation Rate 63.2%, 63.0% previous
• US Private Nonfarm Payrolls 96K, 150K forecast, 131K previous
• US Aug Unemployment Rate 3.7%,3.7% forecast, 3.7% previous
• U.S Aug U6 Unemployment Rate 7.2%, 7.0% previous
• Canada Aug Employment Change 81.1K, 18.9K forecast, -24.2K previous
• Canada Aug Full Employment Change 23.8K, -11.6K previous
• Canada Aug Unemployment Rate 5.7%,5.7% forecast, 5.7% previous
• Canada Aug Ivey PMI 60.6, 55.2 forecast, 54.2 previous
Looking Ahead - Economic Data (GMT)
• 08:00 China FX Reserves (USD) 3.104T previous
Looking Ahead - Events, Other Releases (GMT)
No significant events
Currency Summaries
EUR/USD: The euro was little changed against the U.S. dollar on Friday, as a mixed report on the U.S. jobs market in August reinforced the view of a slowing expansion and the possibility of more interest rate cuts from the Federal Reserve. The U.S. Labor Department said private and public employers hired 130,000 workers in July, fewer than the 158,000 forecast among economists polled by Reuters, while hourly wages grew 0.4% last month, a tad faster than the 0.3% increase projected by analysts. Interest rate futures still implied traders positioned for a quarter-point rate decrease at the Fed's Sept. 17-18 policy meeting. The euro was down 0.04 percent at $1.1030.The dollar index, which measures the greenback against six major currencies, was 0.02 percent higher at 99.38. Immediate resistance can be seen at 1.1087 (21 DMA), an upside break can trigger rise towards 1.1157 (50 DMA).On the downside, immediate support is seen at 1.1007 (5 DMA), a break below could take the pair towards 1.0960 (Sep 2nd low).
GBP/USD: The British pound edged lower on Friday, after a tumultuous week in which it plunged to three-year lows before rebounding strongly as lawmakers voted to block a no-deal Brexit, making a snap election more likely.The British parliament’s upper chamber on Friday approved a bill which aims to block a no-deal Brexit at the end of October by forcing Prime Minister Boris Johnson to seek a delay to Britain’s European Union departure. Traders have been expecting the bill to be passed and so the pound remained unchanged on the day as concerns about an early general election lingered. The bill is expected to receive a Royal Decree on Monday. The British currency slid to as low as $1.2277, down 0.24 percent on the day. Immediate resistance can be seen at 1.2355 (Sep 5th high), an upside break can trigger rise towards 1.2400 (Psychological level).On the downside, immediate support is seen at 1.2203 (5 DMA), a break below could take the pair towards 1.2156 (21 DMA).
USD/CAD: The Canadian dollar strengthened to a one-month high against its U.S. counterpart on Friday, as domestic data showing a bigger-than-expected jobs gain in August reduced investor expectations for a Bank of Canada interest rate cut next month.The Canadian economy gained 81,100 net jobs in August, largely driven by increases in part-time work, Statistics Canada data showed. That was much more than the 15,000 increase that analysts had expected. Gains for the loonie came as the U.S. dollar was pressured by data showing U.S. employers added fewer workers than expected in August.The Canadian dollar was last trading 0.3% higher at 1.3186 to the greenback.Immediate resistance can be seen at 1.3255 (5 DMA), an upside break can trigger rise towards 1.3288 (21 DMA).On the downside, immediate support is seen at 1.3155 (Daily High), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar edged lower against the Japanese yen on Friday, as weaker-than-expected U.S. nonfarm payrolls report weighed on the dollar. The U.S. Labor Department’s monthly employment report showed job growth slowed more than expected in August, with retail hiring declining for a seventh month. Uncertainties around U.S.-China trade ties, fears of a deceleration in global economic growth and negative Treasury yields around the world were further supporting Japanese yen.However, a planned resumption of trade talks between Washington and Beijing, and robust U.S. economic data on Thursday did re-ignite some appetite for riskier assets . Strong resistance can be seen at 107.20 (Psychological level), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 106.46 (5 DMA), a break below could take the pair towards 106.23 (21 DMA).
Equities Recap
European markets pulled back marginally from one-month highs on Friday, as German data showed an unexpected fall in industrial output and the impact of upbeat signals on U.S.-China trade talks faded.
UK's benchmark FTSE 100 closed up by 0.15 percent, Germany's Dax ended up by 0.54 percent, France’s CAC finished the day up by 0.19 percent.
U.S. stocks edged higher on Friday as a new Chinese stimulus plan helped ease some concerns around global growth, while investors digested underwhelming jobs data that rounded off a week of mixed economic signals.
Dow Jones closed up by 0.26 percent, S&P 500 ended up by 0.12 percent, Nasdaq finished the day down by -0.17 percent.
Treasuries Recap
A mixed employment report on Friday morning and an even-keel message from U.S. Federal Reserve Chair Jerome Powell left yields modestly lower, firming up market expectations the central bank will cut interest rates by the expected 25 basis points at its September meeting.
Treasury yields were modestly lower than where they had been going into the panel discussion, with the two-year yield down 1.6 basis points to 1.524% and the 10-year yield down 1.7 basis points to 1.548%.
Commodities Recap
Gold fell 1% on Friday as upbeat remarks from Federal Reserve Chair Jerome Powell and improved risk appetite offset a weaker-than-expected U.S. nonfarm payrolls report, putting bullion on track for a second straight weekly loss.
Spot gold was down 0.7% to $1,508 per ounce at 02:38 p.m. EDT (1838 GMT), after falling more than 1% earlier in the session. U.S. gold futures settled down $10 at $1,515.50.
Oil prices rose above $61 a barrel on Friday as the head of the U.S. Federal Reserve said it would “act as appropriate” to sustain an economic expansion that has been pressured by uncertainty over global trade.
Global benchmark Brent crude was up 60 cents, or 1%, at $61.59 a barrel by 12:23 a.m. CDT (1723 GMT), while U.S. West Texas Intermediate (WTI) crude was 39 cents, or 0.69%, higher at $56.69.
