Market Roundup
•US Initial Jobless Claims 233K, 241K forecast,249K previous
•US Continuing Jobless Claims 1,875K,1,870K forecast, 1,877K previous
•US Jobless Claims 4-Week Avg. 240.75K, 238.00K previous
•US Jun Wholesale Inventories (MoM) 0.2%,0.2% forecast, 0.2% previous
•US Jun Wholesale Trade Sales (MoM) -0.6%,0.4% previous
•US 4-Week Bill Auction 5.285%, 5.285% previous
•US 8-Week Bill Auction 5.190%, 5.230% previous
•US Atlanta Fed GDPNow (Q3) 2.9%,2.9% forecast, 2.9% previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Jul M3 Money Supply 2,168.1B previous
•23:50 Japan M2 Money Stock (YoY) 1.6% forecast, 1.5% previous
•01:30 China Jul CPI (MoM) 0.3% forecast,-0.2% previous
•01:30 Australia Jul NAB Business Confidence 4 previous
•01:30 China Jul CPI (YoY) 0.3% forecast,0.2% previous
•01:30 China Jul PPI (YoY) -0.9% forecast,-0.8% previous
Looking Ahead Events And Other Releases(GMT)
EUR/USD: The euro declined on Thursday as the dollar strengthened following data showing lower-than-expected U.S. unemployment claims, which helped ease recession fears. The U.S. Labor Department said initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 233,000 for the week ended Aug. 3, marking the largest drop in about 11 months and falling short of economist expectations for 240,000. Jobless claims data received extra attention after last Friday's weaker-than-expected July jobs report contributed to Monday's global financial market rout. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, gained 0.11% to 103.22 Immediate resistance can be seen at 1.0977(23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0903(38.2%fib), a break below could take the pair towards 1.0839(50%fib).
GBP/USD: The British pound strengthened against dollar on Thursday, but remained close to this week's one-month lows against the dollar, as a sense of stability returned to markets after an intensely volatile start to the week. The Bank of England's knife-edge decision to cut interest rates last week dented the pound. But since then, concern about a hard landing for the U.S. economy, among other factors, has triggered a selloff in risk assets, sweeping sterling lower along with other global markets. Meanwhile, a survey showed that Britain's jobs market showed further signs of cooling in July and employers increased pay more slowly. The data will form part of the Bank of England's discussions about when to cut interest rates again. Immediate resistance can be seen at 1.2753(38.2%fib), an upside break can trigger rise towards 1.2855(23.6%fib).On the downside, immediate support is seen at 1.2671(50%fib), a break below could take the pair towards 1.2596(61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as global financial markets continued to recover and investors awaited domestic jobs data, which could influence expectations for additional interest rate cuts by the Bank of Canada. Canada's employment report for July, due on Friday, is expected to show the economy adding 22,500 jobs and the unemployment rate rising to 6.5% from 6.4%.The BoC is expected to cut its benchmark interest rate further at its next policy decision on Sept. 4, swaps market data shows, after lowering it to 4.50% last month. The loonie was trading 0.2% higher at 1.3732 to the U.S. dollar, extending its recovery from a near two-year low of 1.3946 on Monday when equity markets tumbled.Immediate resistance can be seen at 1.3761(38.2%fib), an upside break can trigger rise towards 1.3807 (23.6%fib).On the downside, immediate support is seen at 1.3728 (50%fib), a break below could take the pair towards 1.3694(61.8%fib).
USD/JPY: The dollar strengthened against yen on Thursday after data showed jobless claims fell more than expected in the latest week, easing concerns that the labor market was weakening too quickly. The number of Americans filing new applications for unemployment benefits fell more than expected last week, easing concerns that the labor market was deteriorating and reinforcing that a gradual softening remains on track. According to the Labor Department, initial claims for state unemployment benefits dropped by 17,000 to a seasonally adjusted 233,000 for the week ending August 3, marking the largest decline in about 11 months. Economists polled had anticipated 240,000 claims for the latest week. Strong resistance can be seen at 147.87(38.2 %fib), an upside break can trigger rise towards 149.80 (50%fib). On the downside, immediate support is seen at 145.43(23.6%fib), a break below could take the pair towards 143.00(Lower BB).
Equities Recap
Europe's benchmark stock index recouped early losses to close slightly higher on Thursday, helped by encouraging U.S. jobs market data and as the heavy-weight healthcare sector got a boost from Novo Nordisk's recovery.
UK's benchmark FTSE 100 closed down by 0.27 percent, Germany's Dax ended up by 0.37 percent, France’s CAC finished the day down by 0.26 percent.
U.S. stocks surged on Thursday, with the Nasdaq and S&P 500 both closing over 2% higher as rally was driven by a larger-than-expected drop in jobless claims, which helped ease concerns that the labor market was weakening too rapidly.
Dow Jones closed up by 1.76% percent, S&P 500 closed up by 2.30% percent, Nasdaq settled up by 2.86 % percent.
Commodities Recap
Gold prices climbed over 1% on Thursday, bolstered by strong safe-haven demand and increasing expectations for a significant interest rate cut from the U.S. Federal Reserve in September.
Spot gold rose 1.8% to $2,423.25 per ounce by 1758 GMT, snapping a five-session losing streak. U.S. gold futures settled 1.3% higher at $2,463.3.
Oil prices rose for the third consecutive session on Thursday, as U.S. jobs data alleviated demand concerns, and ongoing conflict in the Middle East helped prices rebound from an eight-month low reached on Monday.
Brent crude futures settled up 83 cents or 1.06% to $79.16 a barrel. U.S. West Texas Intermediate crude settled up 96 cents, or 1.28%, to $76.19.
