Market Roundup
•US Imports 212.80B,283.40B previous
•US Exports 282.90B,207.70B previous
•US Continuing Jobless Claims 2,748K,2,775K forecast, 2,862K previous
•US Jobless Claims 4-Week Avg 355.00K,366.50K previous
•US Initial Jobless Claims 340K,345K forecast, 353K previous
•Canada Jul Building Permits (MoM) -3.9%,0.3% forecast, 6.9% previous
•US Jul Trade Balance -70.10B,-71.00B forecast, -75.70B previous
•US Nonfarm Productivity (QoQ) (Q2) 2.1%,2.4% forecast, 2.3% previous
•Canada Jul Trade Balance 0.78B,1.40B forecast, 3.23B previous
•US Unit Labor Costs (QoQ) (Q2) 1.3%,0.9% forecast, 1.0% previous
•Canada Exports 53.75B, 53.76B previous
•US Jul Factory Orders (MoM) 0.4%,0.3% forecast, 1.5% previous
•US Jul Durables Excluding Defense (MoM) -1.1%,-1.2% previous
•US Jul Factory orders ex transportation (MoM) 0.8%, 1.4% previous
Looking Ahead –Economic Data (GMT)
•00:30 Japan Aug Services PMI 47.4 previous
•01:30 Australia Retail Sales (MoM) -2.7% previous
•01:45 China Aug Caixin Services PMI 54.9 previous
Looking Ahead-Events and Other Releases
•No significant events
EUR/USD: The euro held near a one-month high versus the dollar on Thursday, supported by hawkish comments from ECB policymakers after data showed inflation at a decade high and amid signs the Fed is not hurrying to tighten policy. Recent comments from European Central Bank hawks including Austria’s Robert Holzman and Bundesbank boss Jens Weidman also supported the single currency. ECB President Lagarde said the region was recovering from the pandemic and only needed surgical support. The euro was up 0.31% to $1.1874. Immediate resistance can be seen at 1.1877(Daily high), an upside break can trigger rise towards 1.1901(23.6%fib).On the downside, immediate support is seen at 1.1871(5DMA), a break below could take the pair towards 1.1861 (38.2%fib)
GBP/USD: Sterling edged higher on Thursday, driven by a drop in the dollar after data showed weekly jobless claims dropped to a 24-year low, while traders waited for the fuller jobs report on Friday to give new momentum to currency markets.So far this week, the pound has been propelled by moves in other currencies, in the absence of Britain-specific data releases or Bank of England speakers. Weekly initial jobless claims in the U.S. fell last week, and layoffs dropped to their lowest level in more than 24 years, hinting the labor market was continuing its recovery. At 22:46 GMT, the pound was up 0.4% against the dollar, at $1.3825. Immediate resistance can be seen at 1.3841(Daily high),an upside break can trigger rise towards 1.3874 (50%fib).On the downside, immediate support is seen at 1.3807 (38.2%fib), a break below could take the pair towards 1.3768(21DMA).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday as higher oil prices offset data showing that Canada's trade surplus narrowed in July. The price of oil, one of Canada's major exports, was supported by a sharp decline in U.S. crude stocks and a weaker .U.S. dollar, though gains were capped by an OPEC+ decision to stick to its policy of gradually increasing output. U.S. crude oil futures rose 2% to $69.99 a barrel, while the Canadian dollar was trading 0.2% higher at 1.2594 to the greenback. The currency traded in a range of 1.2587 to 1.2638.Immediate resistance can be seen at 1.2591(5DMA), an upside break can trigger rise towards 1.2678(23.6%fib).On the downside, immediate support is seen at 1.2540 (38.2%fib), a break below could take the pair towards 1.2428 (50%fib).
USD/JPY: The dollar edged higher against yen on Thursday following strong labor market data. U.S. weekly initial jobless claims fell last week, and layoffs dropped to their lowest in more than 24 years. Still, rising COVID-19 cases in recent weeks have threatened the economic recovery, keeping the Federal Reserve from pulling back on its massive stimulus. The dollar has been subdued on uncertainty over Fed policy. Last Friday, Fed chair Jerome Powell said that tapering of its stimulus could begin this year, yet the central bank was in no hurry. The Japanese yen weakned 0.01% versus the greenback at 109.94 per dollar. Strong resistance can be seen at 110.06(38.2%fib), an upside break can trigger rise towards 110.42(23.6%fib).On the downside, immediate support is seen at 109.92(9DMA), a break below could take the pair towards 109.74(50%fib).
Equities Recap
The S&P 500 advanced on Thursday as higher commodity prices helped energy names recover ground, while the Nasdaq slipped off an earlier record high, which had been driven by heavyweight technology companies.
Dow Jones closed up by 0.37% percent, S&P 500 closed up by 0.28 % percent, Nasdaq settled up by 0.14% percent.
Treasuries Recap
U.S. Treasury yields drifted lower on Thursday as the market remained on hold ahead of thegovernment's closely watched employment report, which potentially could break yields out of their tight range.
The benchmark 10-year yield was last down 1 basis point at 1.2919%.
Commodities Recap
Gold eased in range-bound trading on Thursday as investors ignored a subdued dollar and squared positions with a focus still on Friday’s non-farm payrolls data that could determine the U.S. Federal Reserve’s tapering strategy.
Spot gold eased 0.2% to $1,809.60 per ounce by 1:41 pm EDT (1741 GMT). U.S. gold futures settled down 0.3% at $1,811.5.
Oil prices rose more than $1 a barrel on Thursday, rebounding on optimism about global economic growth despite the coronavirus pandemic, and after U.S. crude inventories fell more than anticipated.
Brent crude ended up $1.44, or 2%, at $73.03 a barrel. West Texas Intermediate (WTI) crude settled up $1.40, or 2%, to $69.99 a barrel.
