Market Roundup
• U.S. job gains largest in 11 months; unemployment rate rises.
• China buys U.S. soybeans a day after trade talks - traders .
• Trump: 'Good chance' he will declare emergency for wall money.
• EU irks Britain by calling Gibraltar a "colony".
• Oil prices up on strong U.S. jobs data, Venezuela sanctions.
• US Jan Non-Farm Payrolls, 304k, 165k forecast, 312k prev, 222k revised.
• US Jan Private Payrolls, 296k, 170k forecast, 301k prev, 206k revised.
• US Jan Unemployment Rate, 4.0%, 3.9% forecast, 3.9% previous.
• US Jan Average Earnings YY, 3.2%, 3.2% forecast, 3.2% prev, 3.3% revised.
• US Jan Markit Mfg PMI Final, 54.9, 54.9 previous.
• US Jan ISM Manufacturing PMI, 56.6, 54.2 forecast, 54.1 prev, 54.3 revised.
• US Jan U Mich Sentiment Final, 91.2, 90.8 forecast, 90.7 previous.
• CA Jan Markit Mfg PMI SA, 53.0, 53.6 previous.
Looking Ahead - Economic Data (GMT)
• 3 Feb 01:45 China Jan Caixin Services PMI, 53.9 previous
• 4 Feb 00:30 Australia Dec Building Approvals, 1.8% forecast, -9.1% previous
Looking Ahead - Events, Other Releases (GMT)
• 3 Feb 15:40 Minneapolis Fed's Neel Kashkari participates in a closed town hall Q&A in Long Lake, Minn.
Currency Summaries
EUR/USD: The euro edged lower against the U.S. dollar on Friday, after U.S. employment and manufacturing data underscored a strong economy. U.S. job growth surged in January, with employers hiring the most workers in 11 months, the Labor Department said, pointing to underlying strength in the economy despite an uncertain outlook that has left the Federal Reserve wary about more interest rate hikes this year. The employment report showed a tepid gain in hourly earnings while the ISM "prices paid" index slipped more than expected, the latest data that showed a modest U.S. inflationary pace. The euro was last trading at $1.1450. Immediate resistance can be seen at 1.1531 (Higher Bollinger Band), an upside break can trigger rise towards 1.1571 (Jan 19th high).On the downside, immediate support is seen at 1.1421 (21 DMA), a break below could take the pair towards 1.1390 (50 DMA).
GBP/USD: Sterling slipped lower against the dollar on Friday, after survey data highlighted the degree of uncertainty sweeping British manufacturers as the country heads towards Brexit in less than two months. The survey's overall index fell to 52.8 from 54.2 in December, a three-month low and below the consensus forecast in a poll of economists for 53.5.The pound fell more than half a percent against the dollar after the data, briefly piercing a 200-day moving average of $1.3045. It trimmed some losses to trade down 0.3 percent at $1.3080.For the week, it is down nearly a percent, breaking a six weeks of consecutive gains. Immediate resistance can be seen at 1.3161 (Jan 31st High), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3047 (11 DMA), a break below could take the pair towards 1.2937 (21 MA).
USD/CAD: The Canadian dollar strengthened to its highest in nearly three months against its U.S. counterpart on Friday as oil prices rose, while hopes of a resolution to the U.S-China trade dispute boosted Canadian dollar. Gains for the loonie came after U.S. President Donald Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal. The price of oil, one of Canada's major exports, was supported by producer cuts and U.S. sanctions on Venezuelan exports that have helped to tighten supply. At (2050 GMT), the Canadian dollar was trading 0.26 percent higher at 1.3089 to the greenback. Immediate resistance can be seen at 1.3176 (5 DMA), an upside break can trigger rise towards 1.3240 (11 DMA).On the downside, immediate support is seen at 1.3325 (9 DMA), a break below could take the pair towards 1.3275 (20 DMA).
USD/JPY: The dollar jumped higher against the Japanese yen on Friday, hitting one month high, after January data showing the biggest number of U.S. jobs created in 11 months and a rebound in U.S. manufacturing. But weak wage inflation data kept dollar's gains in check. U.S. job growth surged in January, with employers hiring the most workers in 11 months, the Labor Department said, pointing to underlying strength in the economy despite an uncertain outlook that has left the Federal Reserve wary about more interest rate hikes this year. The employment report showed a tepid gain in hourly earnings while the ISM "prices paid" index slipped more than expected, the latest data that show a modest U.S. inflationary pace.The dollar was 0.60 higher versus the Japanese yen at 109.50. Strong resistance can be seen at 114.00 (Psychological level), an upside break can trigger rise towards 114.54 (Oct 3rd high).On the downside, immediate support is seen at 113.16 (9 DMA), a break below could take the pair towards 112.97 (Ichimoku Cloud Top).
Equities Recap
European shares ended higher on Friday, as upbeat U.S. jobs data in January and fresh optimism about the U.S.-China trade spat offset weak bank earnings, gloomy euro-zone macro data and a rout in Germany's Wirecard after a report of fraud spooked.
UK's benchmark FTSE 100 closed up by 0.8 percent, the pan-European FTSEurofirst 300 ended the day up by 0.22 percent, Germany's Dax ended down by 0.1 percent, France’s CAC finished the day up by 0.6 percent.
Wall Street ended mixed on Friday, as optimism from a surge in January U.S. job growth was offset by a weaker-than-expected outlook from Amazon.com Inc that battered retail stocks.
Dow Jones closed up by 0.26 percent, S&P 500 ended up by 0.08 percent, Nasdaq finished the down up by 0.25 percent.
Treasuries Recap
January's surge in U.S. job growth pushed Treasury yields up on Friday just days after the Federal Reserve expressed caution about further interest rate hikes this year.
Two-year yields, which reflect traders' expectations of interest rate hikes, rose 5.8 basis points to 2.52 percent, with the 10-year yield up 5.8 basis points to 2.69 percent.
Commodities Recap
Gold slipped on Friday, weighed down by robust U.S. jobs data, but remained on course for a second week of gains buoyed by the U.S. Federal Reserve's signal that it would pause its interest rate hikes.
Spot gold dipped 0.2 percent to $1,317.61 per ounce at (1932 GMT), having hit a nine-month peak of$1,326.30 on Thursday.U.S. gold futures settled down 0.2 percent to $1,322.10.
Oil prices rose about 3 percent on Friday on upbeat U.S. jobs data and signs that U.S. sanctions on Venezuelan exports have helped tighten supply, then extending gains after weekly data showed U.S. drillers cut the number of oil rigs.
Brent crude oil futures rose $1.91 a barrel, or 3.14 percent, to settle at $62.75 a barrel. The international benchmark notched a weekly gain of about 1.9 percent.
U.S. West Texas Intermediate (WTI) futures ended the session at $55.26, up $1.47 a barrel or 2.73 percent and gained about 3 percent on the week.
