Market Roundup
•German Jul Factory Orders (MoM) 2.8%,5.0% forecast, 27.9% previous
•French Jul Government Budget Balance -151.0B, -124.9B previous
•German Aug IHS Markit Construction PMI 48.0, 47.1 previous
•UK Aug Construction PMI 54.6, 58.5 forecast, 58.1 previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Aug Employment Change 275.0K forecast, 418.5K previous
•12:30 US Aug U6 Unemployment Rate 16.5% previous
•12:30 US Aug Average Hourly Earnings (YoY) (YoY) 4.5% forecast ,4.8% previous
•12:30 US Aug Participation Rate 61.4% previous
•12:30 US Aug Unemployment Rate 9.8% forecast, 10.2% previous
•12:30 US Aug Average Weekly Hours 34.5 forecast, 34.5 previous
•12:30 US Aug Participation Rate 64.6% forecast, 64.3% previous
•12:30 US Aug Government Payrolls 301.0K previous
•12:30 US Aug Unemployment Rate 10.1% forecast, 10.9% previous
•12:30 US Aug Manufacturing Payrolls 50K forecast, 26K previous
•12:30 US Aug Nonfarm Payrolls 1,400K forecast, 1,763K previous
•12:30 US Aug Private Nonfarm Payrolls 1,200K forecast, 1,462K previous
•12:30 US Aug Average Hourly Earnings (MoM) 0.2% previous
•12:30 Canada Aug Part Time Employment Change 345.3K previous
•12:30 Canada Aug Full Employment Change 73.2K previous
•12:30 Brazil Auto Sales (MoM) 31.4% previous
•12:30 Brazil Auto Production (MoM) 73.0% previous
•13:00 Russia Aug CPI (MoM) -0.1% forecast, 0.4% previous
•13:00 Russia Aug CPI (YoY) 3.5% forecast, 3.4% previous
•14:00 Canada Aug Ivey PMI 57.5 forecast, 68.5 previous
•14:00 Canada Aug Ivey PMI n.s.a 65.2 previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 ECB's Lane Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Friday as investors trimmed bullish bets against the greenback and sold the euro on concerns that the European Central Bank was worried about its rise. Traders will be watching for the U.S. payroll data later in the day for confirmation of whether the U.S. economy is indeed in trouble after Wednesday’s disappointing ADP report, which tends to act as a predictor for the official release on Friday. Economists polled expect 1.4 million jobs to have been added in August, less than 1.8 million the months before. The unemployment rate, though, is expected to fall to 10.1% from 10.9%.Immediate resistance can be seen at 1.1871 (38.2% fib), an upside break can trigger rise towards 1.1942 (Higher BB).On the downside, immediate support is seen at 1.1838 (21DMA), a break below could take the pair towards 1.1784 (50%fib ).
GBP/USD: Sterling held near recent lows versus the dollar on Friday as uncertainty around Brexit weighed on the pound, which is expected to weaken further into the end of the year. Dollar strength has pushed cable down, from its eight-month high of $1.3481 on Tuesday to as low as $1.3244 on Thursday, held down by Brexit-related uncertainty and warnings from the Bank of England that the economic fallout from the coronavirus could be worse than expected.On Friday it held near those lows at $1.3289 at 1215 GMT.Immediate resistance can be seen at 1.3353 (Sep 3rd high), an upside break can trigger rise towards 1.3464 (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/CHF: The dollar was little changed against the Swiss franc on Friday muted as investors awaited U.S. jobs data. Focus is now on U.S. payrolls figures due at 1230 GMT, which could be a selling trigger if an expected slowdown in hiring is deeper than forecast. Foreign exchange markets were on edge at the possibility and a safety bid helped the dollar cling to gains that have it headed for its best week in more than two months. Immediate resistance can be seen at 0.9137 (61.8%fib), an upside break can trigger rise towards 0.9170 (Higher BB).On the downside, immediate support is seen at 0.9082 (5 DMA), a break below could take the pair towards 0.9072 (50%fib).
USD/JPY: The dollar steadied against the Japanese yen on Friday as traders awaited key U.S. jobs data that will shed light on the strength of economic recovery from the coronavirus outbreak. The greenback has managed to halt its recent slide, but analysts warn sentiment remains weak due to concern about the strength of U.S. economic growth and speculation that the Federal Reserve will keep rates low for a very long time. Data due later on Friday is expected to show U.S. non-farm payrolls grew by 1.4 million in August, which would be slower than the 1.763 million jobs created in the previous month. Strong resistance can be seen at 106.56 (Daily high), an upside break can trigger rise towards 106.83 (50%fib).On the downside, immediate support is seen at 105.90(5 DMA), a break below could take the pair towards 105.54 (38.2%fib).
Equities Recap
European shares overcame early losses on Friday, with bank stocks leading gains on merger talks between two major Spanish lenders, while markets bet on the European Central Bank maintaining easy monetary policy at a meeting next week.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading up at 0.21 percent, Germany's Dax was down by 0.40 percent, France’s CAC finished was up by 0.19 percent.
Commodities Recap
Gold rose on Friday as the dollar's rally stalled, with investor focus turning to U.S. jobs data later in the day, though bullion was still down over the week.
Spot gold was up 0.4 % at $1,937.96 an ounce by 1137 GMT. U.S. gold futures rose 0.4% to $1,945.70 an ounce.
Oil held above $44 a barrel on Friday and was on course for its biggest weekly decline since June as weak demand figures added to concern over a slow recovery from the COVID-19 pandemic.
Brent crude , the international benchmark, was up 30 cents, or 0.7%, at $44.37 by 1130 GMT, heading for a 1.5% drop this week.
U.S. West Texas Intermediate (WTI) rose 36 cents, or 0.9%, to $41.73, though WTI's advance looks unlikely to prevent its first weekly drop in five.
