Market Roundup
•US Nov Average Hourly Earnings (YoY) (YoY) 4.4%, 4.3% forecast,4.5 previous
• US Nov Average Hourly Earnings (MoM) 0.3%, 0.1% forecast, 0.1% previous
• US Nov Average Weekly Hours 34.8, 34.8, 34.8 previous
• US Nov Government Payrolls -99.0K, -268.0K previous
• US Nov Manufacturing Payrolls 27K, 43K forecast, 38K previous
• US Nov Nonfarm Payrolls 245K, 469K forecast, 638K previous
• US Nov Participation Rate 61.5%, 61.7% previous
• US Nov Private Nonfarm Payrolls 344K, 589K forecast, 906K previous
• US Nov U6 Unemployment Rate 12.0%,12.1% previous
• US Nov Unemployment Rate 6.7%, 6.8% forecast, 6.9% previous
• US Exports 182.00B, 176.40B previous
•US Imports 245.10B, 240.20B previous
•Canada Oct Exports 46.47B,45.25B forecast, 45.54B previous
•Canada Oct Imports 50.23B, 47.90B48.79B, 48.79B previous
•US Oct Trade Balance-3.76B, -64.80B forecast, -63.90B pevious
• Canada Nov Employment Change 62.1K, 20.0K forecast, 83.6K previous
• Canada Nov Full Employment Change 99.4K, 69.1K previous
• Canada Nov Part Time Employment Change -37.4K,14.5K previous
• Canada Nov Participation Rate 65.1%, 65.2% forecast, 65.2% previous
• Canada Nov Unemployment Rate 8.5%, 8.9% forecast, 8.9% previous
• US Durables Excluding Defense (MoM) 0.2%,0.2% previous
•US Oct Factory Orders (MoM) 1.0%,0.8% forecast,1.1% previous
•US Oct Factory orders ex transportation (MoM) 1.0%, 0.5% previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro rose against dollar on Friday as investors piled into bets the U.S. dollar has further to fall. The common currency is up 1.5% for the week so far and last sat comfortably at $1.2145. Investors have turned heavily short dollars in recent months, figuring rates will stay low for a long time in the United States forcing yield-seekers to head elsewhere for better returns. Even worries about a painful winter of deaths and lockdowns in the United States have failed to drive too much safe-haven demand for dollars. Immediate resistance can be seen at 1.2157 (23.6%fib), an upside break can trigger rise towards 1.2200(Psychological level).On the downside, immediate support is seen at 1.2138(Daily low), a break below could take the pair towards 1.12122(38.2% fib).
GBP/USD: The pound retreating from the one-year high against dollar on Friday as growing scepticism that Britain will be able to clinch a post-Brexit trade deal with the European Union kept gains in check. The EU is still negotiating a trade deal with Britain, European Council President Charles Michel said on Friday morning.The next event to eye is the European Council meeting on Dec. 10, with many self-imposed deadlines broken and issues such as fisheries and level playing field still hanging. Immediate resistance can be seen at 1.3464 (23.6%fib), an upside break can trigger rise towards 1.3500(Psychological level).On the downside, immediate support is seen at 1.3395 (38.2%fib), a break below could take the pair towards 1.3330 (50 % fib).
USD/CAD: The Canadian dollar strengthened to a two-year high against its U.S. counterpart on Friday as Wall Street rose and data showed Canada’s economy added more jobs than expected in November, with the currency advancing for the third straight week. Canadian employment rose by 62,000 in November and the unemployment rate fell to 8.5%, both beating analyst expectations. The market also digested U.S. data showing the smallest nonfarm payrolls gain since the jobs recovery started in May. The Canadian dollar was trading 0.6% higher at 1.2774 per greenback. cents. Immediate resistance can be seen at 1.2845(38.2%fib), an upside break can trigger rise towards 1.2902(50%fib).On the downside, immediate support is seen at 1.2763 (23.6%fib), a break below could take the pair towards 1.2700 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Friday as investors shrugged off a November U.S. non-farm payrolls report that badly missed expectations and focused on a flurry of positive vaccine news. Upbeat announcements on COVID-19 vaccines have helped drive a rally in riskier currencies at the expense of the safe-haven dollar. Data showed that U.S. non-farm payrolls increased by 245,000 jobs last month after rising by 610,000 in October. That was the smallest gain since the jobs recovery started in May. The dollar gained 0.2% against the yen to 104.08 yen. Strong resistance can be seen at 104.18(38.2%fib), an upside break can trigger rise towards 104.34 (21DMA).On the downside, immediate support is seen at 103.66 (23.6%fib), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European shares rose on Friday, with energy stocks lifting London’s blue-chip index to nine-month highs, while BioNtech slid after Pfizer slashed the roll-out target of their COVID-19 vaccine.
UK's benchmark FTSE 100 closed up by 0.92 percent, Germany's Dax ended up by 0.73 percent, France’s CAC finished the day down .
Wall Street’s main indexes rose to all-time highs on Friday as data showing the slowest U.S. jobs growth in six months raised investors’ expectations for a new fiscal relief bill to help revive the coronavirus-hit economy.
Dow Jones closed down by 0.45% percent, S&P 500 closed up by 0.01% percent, Nasdaq settled up by 0.78% percent.
Treasuries Recap
U.S. Treasury yields shot higher and the yield curve steepened on Friday after a disappointing November employment report added to pressure for Washington to pass a new round of stimulus to help the coronavirus-battered economy. COVID-19 vaccine.
The benchmark 10-year yield climbed to its highest level since March at 0.986% and was last up 4.8 basis points at 0.9692%.
Commodities Recap
Gold prices eased on Friday as equities rallied, although dollar weakness and a sharp slowdown in U.S. jobs growth in November spurring hopes of additional stimulus aid set gold on track for its first weekly gain in four.
Spot gold was down 0.3% at $1,835.00 per ounce by 10:38 a.m. EST (1538 GMT), having hit its highest since Nov. 23 at $1,847.76 earlier. U.S. gold futures were down 0.2% at $1,837.90.
Brent crude oil futures rose to just under $50 a barrel on Friday as expectations of a U.S. economic stimulus package and the possibility of a vaccine for the coronavirus overrode rising supply and increased COVID-19 deaths.
Brent was up 42 cents at $49.13 a barrel by 11:19 a.m. EST (1619 GMT) after hitting its highest since early March at $49.92. West Texas Intermediate rose 46 cents to $46.10 a barrel, after touching a high of $46.68 a barrel. Both benchmarks are set for a fifth straight week of gains.
