Market Roundup
•US labor growth misses expectations; unemployment rate rises
•Bets rise for a 50 basis point Fed rate cut in September
• US Jul U6 Unemployment Rate 7.8%,7.4% previous
• US Jul Participation Rate 62.7% ,62.6% previous
•US Jul Average Hourly Earnings (MoM) 0.2%,0.3%forecast, 0.3% previous
•US Jul Average Hourly Earnings (YoY) 3.6%, 3.7% forecast, 3.9% previous
•US Jul Nonfarm Payrolls 114K, 176K forecast, 206K previous
•US Jul Private Nonfarm Payrolls 97K,148K forecast, 136K previous
•US Jul Manufacturing Payrolls 1K,-1K forecast, -8K previous
•US Jul Average Weekly Hours 34.2, 34.3 forecast ,34.3 previous
•US Jul Government Payrolls 17.0K, 70.0K previous
•US Jul Unemployment Rate 4.3%, 4.1% forecast, 4.1% previous
•US Jun Durables Excluding Transport (MoM) 0.4%, 0.5% previous
•US Jun Durables Excluding Defense (MoM) -7.2%, -7.0% previous
•US Jun Factory Orders (MoM) (Jun) -3.3%, -2.7% forecast -0.5% previous
•U.S. Baker Hughes Oil Rig Count 482,482 previous
•U.S. Baker Hughes Total Rig Count 586, 589 previous
Looking Ahead Economic Data (GMT)
•No data Ahead
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro rose on Friday as the dollar weakened after weaker-than-expected employment report for July raised expectations that the Federal Reserve will cut interest rates by 50 basis points in September as the economy sours.Employers added 114,000 jobs, below expectations for an increase of 175,000. The unemployment rate rose to 4.3%, above economists expectations that it would be unchanged on the month at 4.1%.Traders are now pricing in a 71% probability that the Fed will cut rates by 50 basis points in September, up from 31% before the data was released and from 22% on Thursday, according to the CME Group's FedWatch Tool. Immediate resistance can be seen at 1.0926(23.6%fib), an upside break can trigger rise towards 1.0938 (Higher BB).On the downside, immediate support is seen at 1.0876(38.2%fib), a break below could take the pair towards 1.0833(50%fib).
GBP/USD: The pound rose on Friday as a weak U.S. jobs report spurred worries on the health of the American economy. The unemployment rate in the U.S. jumped to a near three-year high of 4.3% in July amid a significant slowdown in hiring, heightening fears the labor market was deteriorating and potentially making the economy vulnerable to a recession. U.S. unemployment rate jumped to near a three-year high of 4.3% in July amid a significant slowdown in hiring, heightening fears the labor market was deteriorating and potentially making the economy vulnerable to a recession.Traders recalibrated their bets to price in a steeper than 25 basis point cut in the interest rates by the U.S. central bank in September. Immediate resistance can be seen at 1.2823(38.2%fib), an upside break can trigger rise towards 1.2889(July 29th high).On the downside, immediate support is seen at 1.2712(50%fib), a break below could take the pair towards 1.2661(61.8%fib).
USD/CAD: The Canadian dollar gained slightly against the U.S. dollar on Friday as unexpectedly weak U.S. employment data raised recession concerns. The Labor Department reported a 114,000 increase in nonfarm payrolls last month, falling short of the 175,000 forecast by economists and the 215,000 average monthly increase over the past year. Additionally, the establishment survey revised down job creation for May and June by 29,000. Money markets on Friday rushed to price a 70% chance of the Fed, which was already widely expected to cut rates from September.The loonie was last trading 0.01% higher at 1.3873 to the greenback .Immediate resistance can be seen at 1.3886 (23.6% fib), an upside break can trigger rise towards 1.3913 (Higher BB).On the downside, immediate support is seen at 1.3834(38.2% fib), a break below could take the pair towards 1.3787(50% fib).
USD/JPY:The dollar fell against the yen on Friday after data showed significant slowdown in U.S. job growth in July. The jobs report showed job growth slowed more than expected and unemployment rose to 4.3%, suggesting potential labor market weakness and increased recession risk. The market was already unsettled by disappointing earnings from Amazon and Intel, a softer-than-expected U.S. factory activity survey, and the monthly non-farm payrolls report, which indicated a drop in job growth to 114,000 in July from 179,000 in June. The data heightened expectations for multiple Federal Reserve rate cuts this year, despite the Fed recently deciding to keep rates unchanged. Strong resistance can be seen at 147.85(38.2%fib), an upside break can trigger rise towards 149.20 (50%fib). On the downside, immediate support is seen at 146.41(23.6%fib), a break below could take the pair towards 144.00 (Psychological level).
Equities Recap
European shares slipped on Friday as global equity markets faced turbulence following a U.S. jobs report that heightened concerns about an economic slowdown in the world's largest economy, with financials and tech stocks experiencing the most significant declines.
UK's benchmark FTSE 100 closed down by 1.31percent, Germany's Dax ended down by 2.33 percent, France’s CAC finished the day down by 1. 61 percent.
U.S. stocks sold off for a second straight session on Friday, and the Nasdaq Composite confirmed it was in correction territory after a soft jobs report stoked fears of an oncoming recession.
Dow Jones closed down by 1.51 percent, S&P 500 ended down by 1.84 percent, Nasdaq finished the day down by 2.45 percent.
Commodities Recap
Gold prices retreated on Friday on profit-taking after a more than 1% jump earlier in the session, driven by hopes for rate cuts following weaker-than-expected U.S. jobs data..
Spot gold fell 0.5% to $2,432.19 per ounce as of 2:34 p.m. ET (1834 GMT). U.S. gold futures settled 0.4% lower to $2,4769.8
Oil prices took a hit on the growth worries, with global benchmark Brent futures settled down $2.71, or 3.41%, to $76.81 a barrel. U.S. West Texas Intermediate crude futures finished down $2.79, or 3.66%, at $73.52.
Oil prices dropped on Friday, reaching their lowest level since January, following data showing the U.S. economy added fewer jobs than anticipated and weak Chinese economic figures adding further pressure.
Brent crude futures settled down $2.71, or 3.41%, to $76.81 a barrel. U.S. West Texas Intermediate crude futures settled down $2.79, or 3.66%, at $73.52.
