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America's Roundup: Dollar retreats as U.S. job growth turns cold, Wall Street slides, Gold breaches $1,300 mark, Oil drops 1 pct as economic outlook weakens, U.S. supply surges-March 9th, 2019

Market Roundup

• "Just one more push" to get Brexit, Britain's May urges EU

• EU's Barnier offers Britain "unilateral exit" from customs union after Brexit

• US Feb Non-Farm Payrolls, 20k, 180k forecast t, 304k previous, 311k revised

• US Feb Private Payrolls, 25k, 170k forecast, 296k previous, 308k revised

• US Feb Unemployment Rate, 3.8%, 3.9% forecast, 4.0% previous

• US Feb Average Earnings YY, 3.4%, 3.3% forecast, 3.2% previous, 3.1% revised

• US Feb Average Earnings MM, 0.4%, 0.3% forecast, 0.1% previous

• US Jan Housing Starts Number, 1.230 mln, 1.197 mln forecast, 1.078 mln previous, 1.037 mln revised

• Trump 'confident' about getting a trade deal with China

• N.Y. Fed raises U.S. Q1 GDP estimate above 1 pct

• Atlanta Fed leaves U.S. Q1 GDP growth view at 0.5 pct

• CA Feb House Starts, Annualized,173.1k 205.0k forecast, 208.0k previous, 206.8k revised

• CA Feb Employment Change, 55.9k, 0.0k forecast, 66.8k previous

• CA Feb Unemployment Rate, 5.8%, 5.8% forecast, 5.8% previous

• Argentina sharply hikes rates to stem peso slide

Looking Ahead - Economic Data (GMT)

• No major economic data scheduled

Looking Ahead - Events, Other Releases (GMT)

• 11 March N/A Euro zone finance ministers to meet in Brussels

• 11 March 13:00 Bank of England Monetary Policy Committee member Jonathan Haskel to deliver a speech at University of Birmingham.

Currency Summaries

EUR/USD: The euro strengthened against dollar on Friday, as   greenback declined after data showed U.S. employers hired far fewer workers than forecast in February. U.S. employment growth almost stalled in February, with the economy creating only 20,000 jobs, adding to signs of a sharp slowdown in economic activity in the first quarter. The meagre payroll gains reported by the Labor Department on Friday were the weakest since September 2017. The euro was up 0.35 percent at $1.1234. An index that tracks the dollar versus a basket of six major currencies was down 0.27 at 97.33. Immediate resistance can be seen at 1.1243 (38.2% retracement level), an upside break can trigger rise towards 1.1277 (50% retracement level).On the downside, immediate support is seen at 1.1162 (23.6% retracement level), a break below could take the pair towards 1.1100 (Psychological level).

GBP/USD: The Sterling fell against dollar on Friday, in a volatile session as British Prime Minister Theresa May urged the European Union to make "just one more push" to break the deadlock over Brexit by offering her changes to a deal. With less than three weeks to go before Britain is due to leave the EU, officials are at an impasse over the so-called backstop aimed at ensuring a frictionless border between the British province of Northern Ireland and EU member Ireland. Lawmakers will vote again next week on the withdrawal agreement British Prime Minister Theresa May negotiated with Brussels and which they overwhelmingly rejected in January. The pound was last trading down 0.5 percent at $1.2999 by 2047 GMT.  Immediate resistance can be seen at 1.3031 (50% retracement level), an upside break can trigger rise towards 1.3065 (61.8% retracement level).On the downside, immediate support is seen at 1.2996 (38.2% retracement level), a break below could take the pair towards 1.2952 (23.6% retracement level).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, as investors slashed bets on an interest rate cut this year by the Bank of Canada after domestic data showing a surprise jump in jobs in February. Employers added 55,900 jobs in February, which was the third month of outsized gains in the last four and exceeded the 20,000 jobs created in the United States for the same month. Analysts had forecast February job numbers to be flat in Canada. At (2052 GMT), the Canadian dollar was trading 0.36 percent higher at 1.3405 to the greenback, or 74.52 U.S. cents. The currency, which touched on Thursday its weakest in more than two months at 1.3467, traded in a range of 1.3391 to 1.3466. Immediate resistance can be seen at 1.3400 (50% retracement level), an upside break can trigger rise towards 1.3431 (38.2% retracement level).On the downside, immediate support is seen at 1.3399 (50% retracement level), a break below could take the pair towards 1.3366  (61.8% retracement level).

USD/JPY: The dollar weakened against the Japanese yen on Friday, after data showed U.S. job growth dropped unexpectedly in February, with the economy creating only 20,000 jobs, a 93 percent drop from the prior month, amid a contraction in payrolls in construction and several other sectors. While February's job growth was the weakest since September 2017, other details of the closely followed employment report were strong. The unemployment rate fell back to below 4 percent and annual wage growth was the best since 2009. This could raise concerns about a sharp slowdown in economic activity and adds to the Federal Reserve's case for putting its interest-rate hiking cycle on hold.The dollar was 0.40 lower versus the Japanese yen at 111.12. Strong resistance can be seen at 111.25 (38.2% retracement level), an upside break can trigger rise towards 111.68 (50% retracement level).On the downside, immediate support is seen at 110.70 (23.6% retracement level), a break below could take the pair towards 111.29 (Feb 27th low). 

Equities Recap

European stocks notched up their biggest weekly fall since December on Friday, extending losses as weak China and German data and poor U.S. jobs numbers tightened bears' grip on the market, underscoring worries about a global economic slowdown.

UK's benchmark FTSE 100 closed down by 0.6 percent, the pan-European FTSEurofirst 300 ended the day down by 0.75 percent, Germany's Dax ended down by 0.4 percent, France’s CAC finished the day down by 0.5 percent.

Wall Street's main stock indexes fell for a fifth straight session on Friday and posted their biggest weekly declines since the market tumbled at the end of 2018, as a weak U.S. jobs report ignited more concerns about the global economy.

Dow Jones closed down by 0.09 percent, S&P 500 ended down by 0.21 percent, Nasdaq finished the day down by 0.17 percent.

Treasuries Recap

Treasury yields fell on Friday after U.S. job growth dropped unexpectedly in February, with the economy creating only 20,000 jobs, a 93 percent decline from the prior month, amid a contraction of payrolls in construction, among other sectors.

The 10-year Treasury yield, a proxy for investor sentiment about the overall health of the economy, was 1.1 basis points lower at 2.625 percent. The two-year yield, which reflects traders' expectations for rate hikes, was 1 basis point lower, last at 2.459.

Commodities Recap

Gold rose a percent to a one-week high on Friday, briefly breaching the pivotal $1,300-per-ounce ceiling, as weak U.S. payroll data dented the dollar and risk sentiment, while also exacerbating a gloomy global economic picture.

Spot gold   was up 1 percent at $1,299.62 per ounce as of   (2114 GMT), en route to a weekly gain of 0.4 percent. Prices on Thursday fell to $1,280.91, within striking distance of a more than five-week low touched earlier this week. U.S. gold futures   settled up 1 percent at $1,299.30.

Oil prices fell about 1 percent on Friday after disappointing U.S. job growth revived concerns about a slowing global economy and weaker demand for oil.

Brent crude futures fell 56 cents, 0.8 percent, to settle at $65.74 a barrel. The international benchmark gained 1 percent for the week.
U.S. West Texas Intermediate (WTI) crude futures fell 59 cents, or 1 percent, to settle at $56.07 a barrel. WTI still ended 0.5 percent higher for the week.
 

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