Market Roundup
•Canada Jul Part Time Employment Change-64.4K, 1.9K previous
•Canada Jul Employment Change -2.8K, 26.9Kforecast,-1.4K previous
•Canada Jul Full Employment Change 61.6K, -3.4K previous
•Canada Jul Unemployment Rate 6.4%,6.5% forecast,6.4% previous
•Canada Jul Participation Rate 65.0%, 65.3% previous
•Canada Jul Avg hourly wages Permanent employee 5.2%, 5.6% previous
•U.S. Baker Hughes Oil Rig Count 485,482 previous
• U.S. Baker Hughes Total Rig Count 588, 586 previous
Looking Ahead Economic Data(GMT)
•No data Ahead
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Forecast
EUR/USD: The euro eased against dollar on Friday as traders digested a drop in U.S. jobless claims and the prospect of a looming economic downturn. Markets have endured a chaotic week, triggered in large part by surprisingly soft U.S. payrolls figures a week ago that sent global stocks tumbling, while demand for the safety of assets such as the yen and the franc sent those currencies surging to their highest since the start of the year on Monday. Investors eyed the next week's key inflation data for fresh clues on the potential size of a September rate cut. The euro was down 0.03% at $1.0915. On Monday, it rose as high as $1.1009 for the first time since Jan. 2. Immediate resistance can be seen at 1.0977(23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0903(38.2%fib), a break below could take the pair towards 1.0839(50%fib).
GBP/USD: The British pound edged up on Friday, but remained close to this week's one-month lows against the dollar, as a sense of stability returned to markets after an intensely volatile start to the week. The Bank of England's knife-edge decision to cut interest rates last week dented the pound. But since then, concern about a hard landing for the U.S. economy, among other factors, has triggered a selloff in risk assets, sweeping sterling lower along with other global markets. Meanwhile, a survey showed that Britain's jobs market showed further signs of cooling in July and employers increased pay more slowly. The data will form part of the Bank of England's discussions about when to cut interest rates again. Immediate resistance can be seen at 1.2753(38.2%fib), an upside break can trigger rise towards 1.2855(23.6%fib).On the downside, immediate support is seen at 1.2671(50%fib), a break below could take the pair towards 1.2596(61.8%fib).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Friday and notched its biggest weekly advance in eight months, as domestic jobs data did little to alter expectations for Bank of Canada interest rate cuts. Canada's economy shed 2,800 jobs in July, while the unemployment rate remained at a 30-month high of 6.4%. Analysts had forecast a gain of 22,500 jobs and the unemployment rate to rise to 6.5%. The price of oil , one of Canada's major exports, rose 0.9% to $76.85 a barrel as positive economic data eased demand concerns. The heavily shorted currency was trading nearly unchanged at 1.3730 per U.S. dollar. For the week, it was up 1%.Immediate resistance can be seen at 1.3752(38.2% fib), an upside break can trigger rise towards 1.3813 (23.6% fib).On the downside, immediate support is seen at 1.3710 (50% fib ), a break below could take the pair towards 1.3550(61.8% fib ).
USD/JPY: The dollar eased against yen on Friday as nerves calmed following a volatile week that saw a mass unwinding of currency carry trades in response to the Bank of Japan's surprise rate hike late last month. The U.S. jobs report on Thursday helped calm investor nerves after July's downbeat labour market print that fuelled worries of a prolonged slowdown in the world's largest economy, leading to a financial market selloff. The dollar index , which measures the currency against six others, was down 0.136% at 103.14 following three days of gains.The dollar was last down 0.39% at 146.675 yen , but still on course for its first weekly rise in six weeks. Strong resistance can be seen at 148.45(38.2 %fib), an upside break can trigger rise towards 150.80 (50%fib). On the downside, immediate support is seen at 145.43(23.6%fib), a break below could take the pair towards 143.00(Lower BB).
Equities Recap
Europe's main index climbed on Friday, driven by sustained strength in healthcare stocks, marking its fourth consecutive session of gains. Despite a tumultuous week that started with a global stock sell-off fueled by fears of a U.S. recession, the index managed to close the week with a modest gain.
UK's benchmark FTSE 100 closed up by 0.28 percent, Germany's Dax ended up by 0.24 percent, France’s CAC finished the day up by 0.31 percent.
The S&P 500 closed higher on Friday and finished the week nearly unchanged, having recovered most of the losses incurred since Monday's steep decline.
Dow Jones closed up by 0.13 %percent, S&P 500 closed up by 0.47% percent, Nasdaq settled up by 0.51 % percent.
Commodities Recap
Gold prices held steady on Friday after a sharp rise in the previous session, bolstered by a dip in U.S. Treasury yields, as investors grew confident that the Federal Reserve would lower interest rates in September.
Spot gold was little changed at $2,427.73 per ounce as of 1826 GMT, after a 1.9% rise on Thursday. U.S. gold futures settled 0.4% higher, at $2,473.4.
