|   Market Roundups


  |   Market Roundups


America’s Roundup: Dollar steady after jobs miss as investors bet taper is on track, Wall Street ends lower, Gold pares gains, Oil rises as the energy crunch shows no signs of slowing down-October 9th,2021

Market Roundup

• Canada Sep Part Time Employment Change -36.5K, 21.7K previous

• Canada Sep Full Employment Change 193.6K, 68.5K previous

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

• US Sep Private Nonfarm Payrolls 455K, 317K, forecast, 243K previous

• US Sep Nonfarm Payrolls 194K, 500K forecast 235K previous

• US Sep Manufacturing Payrolls 26K, 25K forecast 37K previous

•Canada Sep Unemployment Rate 6.9%, 6.9% forecast 7.1% previous

• US Sep Participation Rate 65.5%, 65.1% previous

• US Average Weekly Hours 34.8, 34.7 forecast, 34.7 previous

• US Sep Unemployment Rate 5.1% forecast 5.2% previous

• US Sep Average Hourly Earnings (YoY) (YoY) 0.6%, 0.4%forecast 0.6% previous

• US Sep Participation Rate 61.6%, 61.7% previous

• Canada Sep Employment Change 157.1K,65.0K forecast, 90.2K previous

• US Aug Wholesale Trade Sales (MoM)  -1.1%,1.0% forecast, 2.0% previous

• US Wholesale Inventories (MoM) 1.2% ,1.2%  previous

• U.S. Baker Hughes Oil Rig Count 433,421 previous

• U.S. Baker Hughes Total Rig Count 533, 521 previous

Looking Ahead-Economic Data(GMT)

• No data ahead

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: euro steadied against greenback on Friday after a downside surprise in September non-farm payrolls, but gains were limited as investors were still expecting the Fed to advance toward tapering. The U.S. economy created the fewest jobs in nine months in September amid a drop in hiring at schools and worker shortages, but ebbing COVID-19 cases and the end of generous unemployment benefits could boost employment gains in the months ahead. The survey of establishments showed nonfarm payrolls increased by 194,000 jobs last month. Data for August was revised to show 366,000 jobs created instead of the previously reported 235,000 positions. Immediate resistance can be seen at 1.1571 (50%fib), an upside break can trigger rise towards 1.1606(61.8%fib).On the downside, immediate support is seen at 1.1540(38.2%fib), a break below could take the pair towards 1.1499 (23.6%fib).

GBP/USD: Sterling strengthened on Friday after disappointing U.S. payrolls , but sterling failed to hold the highs as markets expected the Fed would be undeterred from tapering at its next meeting.Payrolls rose 194,000, well below the consensus forecast of 500,000, but August was revised up by 131,000 and the household survey showed a 526,000 rise in jobs, close to the 512,000 3-month average. Markets still expect the Fed to announce QE tapering at their Nov. 2-3 meeting, while futures project the first U.S. rate hike in September or December 2022. Immediate resistance can be seen at 1.3637(50%fib),an upside break can trigger rise towards 1.3709(61.8%fib).On the downside, immediate support is seen at 1.3567(38.2%fib), a break below could take the pair towards 1.3485(23.6%fib).

USD/CAD: The Canadian dollar on Friday rose to its highest level in more than two months against the greenback as data showed Canada regaining all the jobs it lost since the start of the pandemic, supporting further cuts to Bank of Canada bond purchases. The Canadian economy posted a monster gain of 157,100 jobs in September, almost three times the number expected, and the unemployment rate hit an 18-month low of 6.9%, Statistics Canada data indicated. The Canadian dollar was trading 0.5% higher at 1.2472 to the greenback , after touching its strongest since Aug. 5 at 1.2446. The currency was on track to rise for a third week, with a gain of 1.2% .Immediate resistance can be seen at 1.4117 (Daily high), an upside break can trigger rise towards 1.42569 (Higher BB). On the downside, immediate support is seen at 1.4047 (9 DMA), a break below could take the pair towards 1.3986 (55 DMA).

USD/JPY: The dollar rose against yen on Friday as investors still expected the Federal Reserve to begin tapering its massive bond purchases as early as next month despite a weak U.S. labor market report. The U.S. economy created the fewest jobs in nine months in September amid a drop in hiring at schools and worker shortages. The September jobs report was the last one before Fed policymakers meet Nov. 2-3, when the market expects tapering to begin or a timeline to be announced. The dollar index , which tracks the greenback versus a basket of six currencies, fell 0.076% to 94.105. Strong resistance can be seen at 111.77(23.6%fib), an upside break can trigger rise towards 112.00(Psychological level).On the downside, immediate support is seen at 111.51(38.2%fib), a break below could take the pair towards 111.32(11DMA).

Equities Recap                                                                      

European stocks ended a volatile session lower on Friday as investors digested data showing slowing jobs growth in the United States, but they still marked their best week in two months as fears of soaring inflation were tempered.

UK's benchmark FTSE 100 closed up by  0.25 percent, Germany's Dax ended down by 0.29 percent, France’s CAC finished the day down by 0.61 percent.                 

U.S. stocks oscillated between gains and losses on Friday after data showed U.S. jobs rose far less than expected in September, but not slow enough to throw the Federal Reserve off its presumed course of tapering asset purchases this year.

Dow Jones closed down  by  0.03% percent, S&P 500 closed down by 0.19 % percent, Nasdaq settled down  by 0.55%     percent.

Treasuries Recap

 U.S. Treasury yields hit multi-month highs on Friday in the wake of a weaker-than-anticipated September employment report that was still expected to keep the Federal Reserve on track with its tapering plans and as inflation expectations rose. 

The benchmark 10-year yield, which dropped to a session low of 1.558% shortly after the jobs data, later climbed to its highest level since June 4 at 1.617%. It was last up 3.2 basis points at 1.603%.

Commodities Recap

Gold pared gains on Friday after rising more than 1% on U.S. jobs data miss, as investors came to terms with the possibility the Federal Reserve could still have enough fodder to wean the economy off stimulus this year.

Spot gold was up 0.2% at $1,758.86 per ounce by 1:47 p.m. EDT (1747 GMT) after hitting $1,781.20, its highest level since Sept. 22.U.S. gold futures settled down 0.1% at $1,757.4.

Oil rose on Friday, gaining about 4% on the week as a global energy crunch boostedU.S. prices to their highest in almost seven years as big power users struggle to meet demand.

Brent crude futures rose 44 cents, or 0.5%, to settle at $82.39 a barrel. Earlier in the week, the global benchmark hit a three-year high of $83.47.

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