FX Beat
DXY: U.S. dollar index extends retreat from 2-year highs at 98.93. DXY was trading at 98.25, down 0.15% at 11:20 GMT ahead of the crucial NFP data.
EUR/USD: EUR/USD extends marginal gains on the day. The major bounced off multi-month lows with 'Hammer' formation on the daily charts. The pair has formed a spinning top at the time of writing, currently trading at 1.1096 at 10:40 GMT. Immediate resistance seen at 5-DMA at 1.1110. Break above could see upside till 21-EMA at 1.1175. Major trend is bearish. Rejection at 5-DMA will see continuation of downside.
USD/CHF: USD/CHF slumps lower for the second straight session. The major was trading at 0.9855, down 0.48% at 10:45 GMT. The pair is extending retreat after rejection at 200-DMA. Major trend as indicated by GMMA is bearish and recovery was capped at 200-DMA. Technical indicators are turning bearish, we see resumption of downside. RSI is below 50 mark and biased lower. Stochs are showing retrace from overbought levels. The pair has broken below 20-DMA (0.9880), finds major support at 200W SMA at 0.9849. Decisive break below will open up downside.
GBP/USD: GBP/USD consolidates at new 2 1/2 year lows, bias remains bearish. GBP/USD is struggling to hold onto 1.2100 after the ruling Conservative Party's majority has squeezed after losing a by-election in Wales. Bearish pressure on as UK's construction PMI for the month of July disappointed market expectations. Volatility is rising on charts, 1.1905 (2016 lows) looks like the next major support. 5-DMA is immediate resistance at 1.2152. Break above could see minor pullback upto 20-DMA at 1.2397.
USD/JPY: USD/JPY extends slump following President Donald Trump’s imposition of additional taxes on Chinese goods. Technical studies have turned bearish. Upside was rejected at 110-EMA. Price action has fallen below major moving averages and volatility is rising. Investors focus on the country’s non-farm payrolls data for the month of July scheduled to be released today by 18:00GMT. Price action has formed a 'Double Bottom' at 106.78. Break below will likely see next major support at 104.65.
Equities Recap
European markets took another beating on Friday while investors piled on to safe-haven assets after Trump's tariffs threat. FTSEurofirst 300 index was down 1.93 percent at 1,496.74 points.
Britain's FTSE 100 was trading 1.73 percent lower at 7,453.35 points, while mid-cap FTSE 250 was down 1.24 percent at 19,391.18 points.
Germany's DAX trades 2.54 percent lower at 11,942.62 points; France's CAC 40 trades 2.71 percent lower at 5,406.63 points.
Commodities Recap
Oil prices rebound more than 2% after plunge on Trump's tariff vow. WTI oil was trading at $55.32 at 11:40 GMT.
Gold prices take a breather after previous session's spike. Sopt gold was trading at $1436.86 at 11:45 GMT, down 0.54 percent as market await U.S. NFP data.
Copper price hit new multi-month lows at 2.594 before paring some losses to trade at 2.605 at 11:45 GMT.
Treasuries Recap
U.S.: The U.S. Treasury yields plunged during Friday’s afternoon session, following President Donald Trump’s imposition of additional taxes on Chinese goods as investors still await the country’s non-farm payrolls data for the month of July and the unemployment rate for the similar period, both scheduled to be released today by 18:00GMT. The yield on the benchmark 10-year Treasury yield slumped 5-1/2 basis points to 1.837 percent, the super-long 30-year bond yields plunged 7 basis points to 2.372 percent and the yield on the short-term 2-year traded 2 basis points lower at 1.702 percent.
UK: The United Kingdom’s gilts gained during European trading hours Friday after the country’s construction PMI for the month of July disappointed market sentiments beyond initial anticipations. The yield on the benchmark 10-year gilts, traded tad higher 0.618 percent, the 30-year yield hovered around 1.315 percent and the yield on the short-term 2-year traded tad 1 basis point higher at 0.438 percent.
EUR: The German bunds jumped during European trading session Friday despite a higher-than-expected rise in the eurozone’s retail sales for the month of June, released today. The German 10-year bond yields, which move inversely to its price, slumped 3-1/2 basis points to -0.486 percent, the yield on 30-year note plunged 6-1/2 basis points to 0.022 percent while the yield on short-term 2-year traded 1-1/2 basis points down at -0.785 percent.
JGBs: The Japanese government bond yields suffered at the cost of an additional tariff imposition by the United States President Donald Trump on Chinese goods, citing, inappropriate progress on trade talks, hinting at further stern decisions, if no conclusion is reached at the earliest. At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged 16-1/2 basis points to -0.165 percent, the yield on the long-term 30-year suffered 4 basis points at 0.324 percent and the yield on short-term 2-year slumped 20 basis points to -0.203 percent
AUS: Australian government bond yields plunged during Asian session of the last trading day of the week Friday, tracking a massive slump in the U.S. 10-year counterpart after President Donald Trump announced on Twitter a new set of trade tariffs on goods imported from China. Also, the country’s retail sales for the month of June slightly exceeded market expectations, also rising from the previous reading in May. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 11-1/2 basis points to 1.095 percent, the yield on the long-term 30-year bond slumped 9-1/2 basis points to 1.774 percent and the yield on short-term 2-year suffered nearly 8 basis points at 0.793 percent.
