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America’s Roundup: Dollar falls after U.S. jobs report, Wall Street ends mixed, Gold ticks up, Oil slips, but gains 5% in the week on Kazakh, Libyan concerns-January 8th, 2022

Market Roundup

•Canada Dec Part Time Employment Change -67.7K ,73.8K previous

•US Dec Private Nonfarm Payrolls  211K ,365K forecast, 235K previous

•Canada Dec Full Employment Change  122.5K,79.9K previous

•US Dec Average Hourly Earnings (MoM) 0.6%  ,0.4% forecast, 0.3% previous

•US Dec Nonfarm Payrolls  199K, 400K forecast, 210K previous

•Canada Dec  Unemployment Rate  5.9%,6.0% forecast, 6.0% previous

•US Dec  Unemployment Rate  3.9%,4.1% forecast, 4.2% previous

•US Dec  Average Hourly Earnings (YoY) (YoY)  4.7%, 4.2% forecast, 4.8% previous

•Canada Dec Employment Change  54.7K, 27.5K forecast, 153.7K previous

•Canada Dec Ivey PMI  45.0,61.2 previous

•U.S. Baker Hughes Oil Rig Count 481, 480 previous

•U.S. Baker Hughes Total Rig Count 588, 586 previous

Looking Ahead - Economic Data (GMT) 

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Looking Ahead - Economic events and other releases (GMT)

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Currency Summaries

EUR/USD: The euro strengthened   on Friday as dollar weakened on the heels of the December jobs report that missed expectations. The dollar index weakened after the Labor Department said nonfarm payrolls rose by 199,000 last month, well short of the 400,000 estimate. But  underlying data in the report appeared sturdier, with the unemployment rate falling to 3.9% against expectations of 4.1% while earnings rose by 0.6%. The euro was up 0.3% to $1.1325 against the greenback, after showing little reaction to data showing euro zone inflation rose to 5% in December. Immediate resistance can be seen at 1.1369(23.6%fib), an upside break can trigger rise towards 1.1388 (Higher BB).On the downside, immediate support is seen at 1.1333 (38.2%fib), a break below could take the pair towards 1.1307(50%fib).

GBP/USD: Sterling was on track on Friday for weekly gains against the dollar   to start 2022, despite a mixed picture emerging for Britain’s economy.The currency has strengthened since mid-December in part due to the Omicron variant of COVID-19 proving less disruptive to the economy than originally feared, analysts have said, with the government only lightly tightening restrictions so far.Sterling was heading for a 0.4% gain versus the dollar for the week and 0.6% up against the euro. Immediate resistance can be seen at 1.3598 (23.6%fib), an upside break can trigger rise towards 1.3638 (Higher BB).On the downside, immediate support is seen at 1.3530(38.2%fib), a break below could take the pair towards 1.3474 (50%fib).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as stronger-than-expected domestic jobs data helped it make up some lost ground from earlier in the week when it was unable to benefit from a rally in crude oil prices. The Canadian economy added 54,700 jobs in December, twice as many as expected, and the unemployment rate hit a 22-month low, though the survey was taken before the Omicron variant of the coronavirus began spreading.  U.S. data showed that employment increased less than expected in December amid worker shortages. The loonie was 0.8% higher at 1.2635 to the greenback , after trading in a range of 1.2633 to 1.2731 .Immediate resistance can be seen at 1.2687 (38.2%fib), an upside break can trigger rise towards 1.2750 (23.6%fib).On the downside, immediate support is seen at 1.2634 (50%fib), a break below could take the pair towards 1.2584(61.8%fib).

USD/JPY: The U.S. dollar declined on Friday against Japanese yen on the heels of the December U.S. jobs report that missed expectations. The Labor Department said nonfarm payrolls rose by 199,000 last month, well short of the 400,000 estimate. But analysts noted underlying data in the report appeared sturdier, with the unemployment rate falling to 3.9% against expectations of 4.1% while earnings rose by 0.6%, indicating tightness in the labor market. The Japanese yen strengthened 0.22% versus the greenback at 115.53 per dollar. The yen has taken the brunt of the damage while the greenback has strengthened recently. Strong resistance can be seen at 115.69(38.2%fib), an upside break can trigger rise towards 116.26 (23.6%fib).On the downside, immediate support is seen at 115.39 (9DMA), a break below could take the pair towards 115.21(50%fib),

Equities Recap

European shares slipped on Friday on concerns over rising inflation and surging coronavirusinfections, while investors were uncertain over how weak U.S. payrolls data would influence the Federal Reserve's plans for tightening policy.

UK's benchmark FTSE 100 closed up by  0.47 percent, Germany's Dax ended down by 0.65 percent, France’s CAC finished the day down by 0.42 percent.                 

Wall Street's edged lower on Friday after data pointed to weaker-than-expected job growth last month, further fueling bets of an aggressive monetary policy tightening by the Federal Reserve.

Dow Jones closed down  by  0.01 percent, S&P 500 closed down by 0.41 % percent, Nasdaq settled down  by 0.96%  percent.

Treasuries Recap

U.S. benchmark Treasury 10-year yield soared to a two-year high on Friday, as a mixed U.S. nonfarm payrolls report that showed fewer-than-expected new jobs created in December was viewed as good enough to keep the Federal Reserve on track to raise interest rates at its March meeting.

The U.S. 10-year yield rose to 1.801% , the highest since January 2020.U.S. 10-year yields have gained about 25 basis points this week, its best weekly rise since September 2019.

Commodities Recap

Gold prices edged up from three-week lows on Friday after data showed U.S. jobs growth was slower than expected last month even as the Federal Reserve signalled faster rate hikes, which sent bullion on track for a weekly fall.

Spot gold was last up 0.5% at $1,797.10 per ounce by 13:43 ET (1843 GMT), while U.S. gold futures settled up 0.5% at $1,797.40.

Oil prices settled lower on Friday, as the market weighed supply concerns from the unrest in Kazakhstan and outages in Libya against a U.S. jobs report that missed expectations and its potential impact on Federal Reserve policy.

Brent crude settled down 24 cents, or 0.3%, to $81.75 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 56 cents, or 0.7%, at $78.90 a barrel.

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