Market Roundup
• Canada Labor Productivity (QoQ) (Q2) 0.6%,-1.7% previous
• US Aug U6 Unemployment Rate 8.8%,9.2% previous
• US Aug Participation Rate 61.7%,61.7% previous
• US Aug Unemployment Rate 5.2%,5.2% forecast, 5.4% previous
• US Aug Average Hourly Earnings (YoY) (YoY) 4.3%,4.0% forecast, 4.0% previous
• US Aug Average Weekly Hours 34.7,34.8 forecast, 34.8 previous
• US Aug Nonfarm Payrolls 235K, 750K forecast, 943K previous
• US Aug Private Nonfarm Payrolls 243K, 665K forecast, 703K previous
• US Aug Manufacturing Payrolls 37K,25K forecast, 27K previous
• US Aug Average Hourly Earnings (MoM ) 0.6%,0.3% forecast, 0.4% previous
•US Aug Services PMI 55.1, 55.2 previous
•US Aug Markit Composite PMI 55.4,55.4 previous
•US Aug ISM Non-Manufacturing PMI 61.7,61.5 forecast, 64.1 previous
•US Aug ISM Non-Manufacturing Employment 53.7, 53.8 previous
•US ISM Non-Manufacturing Prices 75.4,82.3 previous
•US Aug ISM Non-Manufacturing New Orders 63.2, 63.7 previous
•US Aug ISM Non-Manufacturing Business Activity 60.1,62.8 forecast, 67.0 previous
•US U.S. Baker Hughes Total Rig Count 497,503 previous
•US U.S. Baker Hughes Oil Rig Count 394 ,410 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 the dollar on Friday after a much softer than expected U.S. payrolls report that is likely to keep the Federal Reserve on hold in scaling back its massive stimulus measures. Nonfarm payrolls increased by 235,000 in August, well short of the 728,000 forecast by economists in poll, while the unemployment rate dipped to 5.2% from 5.4% in the prior month.The dollar index dropped to a low of 91.941, its lowest level since Aug. 4, and was last down 0.102% at 92.133. Immediate resistance can be seen at 1.1907(23.6%fib), an upside break can trigger rise towards 1.1929(29th June high).On the downside, immediate support is seen at 1.1866(38.2%fib), a break below could take the pair towards 1.1841 (5DMA)
GBP/USD: Sterling rose to a three-week high on Friday after data showed the U.S. economy created the fewest jobs in seven months in August, casting doubt over the timing of the Federal Reserve's plan to scale back its bond buying scheme. Investors had been primed for more than double the 235,000 jobs actually created in August, but rising COVID-19 cases have crimped the economic recovery, further subduing the dollar. At 1500 GMT, the pound was up 0.3% against the dollar at $1.3874 , a level last seen on Aug. 16. Immediate resistance can be seen at 1.3882(23.6%fib),an upside break can trigger rise towards 1.3908 (Higher BB).On the downside, immediate support is seen at 1.3822(38.2%fib), a break below could take the pair towards 1.3778(50%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as weaker-than-expected U.S. jobs data weighed on the greenback. The U.S. dollar lost ground against a basket of major currencies after data showed that U.S. job growth slowed more than expected in August. The data could affect the timing of the Federal Reserve's announcement on when it will start scaling back its massive monthly bond buying program. U.S. crude prices rose 0.1% to $70.08 a barrel, while the Canadian dollar was up 0.1% to trade at 1.2504 per greenback. Immediate resistance can be seen at 1.2522 (Daily high), an upside break can trigger rise towards 1.2577 (38.2%fib).On the downside, immediate support is seen at 1.2488 (23.6%fib), a break below could take the pair towards 1.2453 (Aug 2nd low).
USD/JPY: The dollar declined against yen on Friday after a closely watched U.S. jobs report came in well below expectations. U.S. non-farm payrolls increased by 235,000 jobs last month, far below the 728,000 jobs expected by economists The Federal Reserve has made a labour market recovery a condition for paring back its pandemic-era asset purchases, making the jobs data a major event that sent a wave through markets globally. The Federal Reserve has made a labour market recovery a condition for paring back its pandemic-era asset purchases, making the jobs data a major event that sent a wave through markets globally. Strong resistance can be seen at 109.83(38.2%fib), an upside break can trigger rise towards 109.91(5DMA).On the downside, immediate support is seen at 109.59(38.2%fib), a break below could take the pair towards 109.30(23.6%fib).
Equities Recap
European shares extended falls with a widely watched gauge of banking shares briefly dipping 1% on Friday after data showed U.S. jobs growth in August missed estimates, fuelling fears that bets of a robust economic recovery may be overdone.
UK's benchmark FTSE 100 closed down by 0.36 percent, Germany's Dax ended down by 0.37 percent, France’s CAC finished the day down by 1.08 percent.
Wall Street’s main indexes offered mixed performances in the wake of Friday’s disappointing U.S. jobs growth data, which sent the Dow lower on fears about the pace of economic recovery but boosted the tech-heavy Nasdaq as the argument for near-term tapering was weakened.
At (GMT19:28) Dow Jones was last down by 0.13% percent, S&P 500 was last up by 0.02 % percent, Nasdaq was last up by 0.22% percent.
Treasuries Recap
The benchmark U.S. Treasury yield jumped on Friday on fears of rising inflation while equity markets wavered after a weaker-than-expected U.S. jobs report likely pushed back when the Federal Reserve will start to reduce its support for the economy.
Commodities Recap
Gold advanced more than 1% to its highest in 2-1/2 months on Friday, as a slower-than-expected U.S. jobs growth in August drove the dollar lower, casting doubts on the Federal Reserve’s tapering timeline.
Spot gold was up 1.2% at $1,830.71 per ounce by 1:33 p.m. EDT (1733 GMT), after hitting its highest since mid-June at $1,833.80, on track to a fourth straight weekly gain.U.S. gold futures settled 1.2% higher at $1,833.7.
Oil prices fell on Friday, slipping after a U.S. jobs report indicated a patchy recovery amid the pandemic.
Brent crude futures were down 34 cents to $72.69 a barrel at 1:15 p.m. ET (1715 GMT), while U.S. West Texas Intermediate (WTI) crude futures were down 54 cents at $69.45 a barrel. Both benchmark oil contracts were largely steady for the week.
