Market Roundup
• Russia CPI (YoY) 3.0%,3.0% forecast, 3.5% previous
• US Dec Average Hourly Earnings (MoM) 0.1%,, 0.3% forecast, 0.3% previous
• US Dec Nonfarm Payrolls 145K, 164K forecast 256K previous
• US Dec Participation Rate 63.2%, 63.2% forecast, 63.2% previous
• US Dec Private Nonfarm Payrolls 139K, 152K forecast 243K previous
• US Dec Unemployment Rate 3.5%, 3.5% forecast ,3.5% previous
• Canada Dec Employment Change 35.2K, 25.0K forecast, -71.2K previous
• Canada Dec Full Employment Change 38.4K, -38.4K previous
• Canada Dec Unemployment Rate 5.6%, 5.8% forecast, 5.9% previous
Looking Ahead - Economic Data (GMT)
• No significant data
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Friday, as dollar dipped on signs of renewed U.S.-Iranian tensions scuttled a rally triggered by a U.S. labor report showing a strong economy. The United States said it was imposing additional sanctions on Iran as a result of its missile attack on U.S. troops in Iraq this week, and Washington rebuffed an Iraqi request to pull out its troops. The euro was up 0.02 percent at $1.1108. An index that tracks the dollar versus a basket of six major currencies was down 0.11 at 97.42 on Monday. Immediate resistance can be seen at 1.1133 (21 DMA), an upside break can trigger rise towards 1.1168 (Jan 8th High).On the downside, immediate support is seen at 1.1064 (100 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling declined against dollar on Friday, as a second policymaker joined Bank of England governor Mark Carney in signalling a potential rate cut. Bank of England policymaker Silvana Tenreyro said she would be inclined to back an interest rate cut in the coming months if growth does not pick up, adding to suggestions that the central bank is edging towards pumping more stimulus into the economy. The pound was down 0.1% against the dollar, at $1.3055, holding close to Thursday’s floor at $1.3014, the lowest level since Dec. 27. Immediate resistance can be seen at 1.3102 (5 DMA), an upside break can trigger rise towards 1.3331 (Higher BB).On the downside, immediate support is seen at 1.3005 (50 DMA), a break below could take the pair towards 1.2889 (Lower BB).
USD/CAD: The Canadian dollar was little changed against the greenback on Friday, as stronger-than-expected domestic jobs data helped support the currency after it was pressured this week by falling oil prices. At (2052 GMT), the Canadian dollar was trading nearly unchanged at 1.3059 to the greenback. The currency, which on Thursday hit its weakest intraday level in nearly two weeks at 1.3104, traded in a range of 1.3029 to 1.3075. For the week, the loonie was down 0.5%, giving back some of the 5% gain it posted in 2019, when it was the top-performing G10 currency. Immediate resistance can be seen at 1.3075 (Daily High), an upside break can trigger rise towards 1.3123 (Higher BB).On the downside, immediate support is seen at 1.3016 (9 DMA), a break below could take the pair towards 1.2942 (Lower BB).
USD/JPY: USD/JPY: The dollar edged lower against the Japanese yen on Friday, as possible renewed U.S.-Iran tensions weighed on market sentiment. The greenback was also pressured by weaker-than-expected U.S. payrolls data for December, which followed a batch of strong economic figures. The report, however, was unlikely to sway the Federal Reserve from its neutral stance on interest rates. Over the last few sessions, the currency market has been badgered by geopolitical tension. The yen and Swiss franc had fallen from highs hit last week after the United States and Iran, in recent comments, moved away from an all-out conflict. Strong resistance can be seen at 109.72 (Daily High), an upside break can trigger rise towards 110.07 (Higher BB).On the downside, immediate support is seen at 108.95 (5 DMA), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European shares fell modestly on Friday on weaker than expected U.S. jobs growth, but travel and leisure stocks gained after Ryanair raised its profit forecast and Evolution Gaming Group announced an online U.S. casino deal.
UK's benchmark FTSE 100 closed down by 0.14 percent, Germany's Dax ended down by 0.09 percent, France’s CAC finished the day down by 0.09 percent.
U.S. stocks fell on Friday from record-high levels as investors took profits and data showed slower-than-expected December U.S. jobs growth, but the major indexes posted gains for the week.
Dow Jones closed down by 0.46 percent, S&P 500 ended down by 0.29 percent, Nasdaq finished down by 0.27 percent.
Treasuries Recap
U.S. Treasury yields were lower on Friday after the Labor Department’s nonfarm payrolls report showed job growth slowed more than expected in December and wages stagnated, limiting inflation risk.
The benchamark 10-year yield was last down 3.3 basis points to 1.825%. The two-year yield was half a basis point lower at 1.570%.
Commodities Recap
Gold edged higher on Friday, and was on track to post a weekly gain for fifth straight week, as fresh sanctions on Iran by the United States stoked uncertainty supporting demand for the bullion.
Spot gold rose 0.4% to $1,557.86 per ounce by 2:12 p.m. EST (1912 GMT) and was up about 0.4% for the week.U.S. gold futures settled up 0.4% at $1,560.1 per ounce.
Oil fell below $65 a barrel on Friday in its first weekly loss since late November, erasing the week’s risk premium added since a U.S. drone strike killed a top Iranian general as investors focused on rising U.S. inventories and other signs of ample supply.
Brent crude, the global benchmark, settled at $64.98, down 39 cents. West Texas Intermediate crude fell 52 cents to end at $59.04.
