Market Roundup
• U.S. payrolls grow 164,000 in July, lower than June
• Renewed U.S.-China trade tensions keep bond yields low
• Futures suggest traders see a U.S. rate cut in September
• US Jul Average Weekly Hours, 34.3 forecast, 34.4 forecast, 34.4 previous
• US Exports 206.30B, 210.70B previous
• US Jul Government Payrolls 16.0K, -14.0K previous
• US Imports 261.50B, 266.00B previous
• US Jul Manufacturing Payrolls 16K, 5K forecast 12K previous
• US Jul Nonfarm Payrolls 164K, 164K forecast 193K previous
• US Jul Participation Rate 63.0%, 62.9% previous
• US Jul Private Nonfarm Payrolls148K, 160K forecast, 179K previous
• US Jun Trade Balance -55.20B, 54.60B forecast, -55.30B previous
• US JuL Unemployment Rate 3.7%, 3.7% forecast,, 3.7% previous
• Canada Jun Exports -50.31B. 51.50B forecast, 53.00B previous
• Canada Jun Imports -50.17B, 51.80B forecast, 52.43B previous
• US Jun Factory Orders (MoM) -0.6%,0.8% forecast, -1.3% previous
• US Michigan 5-Year Inflation Expectations 2.50%,2.60% previous
Looking Ahead - Economic Data (GMT)
No Economic Data ahead
Looking Ahead - Events, Other Releases (GMT)
No Significant Events
Currency Summaries
EUR/USD: The euro strenthed against the U.S. dollar on Friday, as dollar dipped after U.S. employment growth in July slowed as expected. Nonfarm payrolls increased by 164,000 jobs in July, less than the month prior, and wages increased modestly, the Labor Department aid. The report came a day after President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, a move that led financial markets to almost fully price in a September rate cut.The euro was up 0.22 percent at $1.1108. An index that tracks the dollar versus a basket of six major currencies was down 0.32 at 98.08. Immediate resistance can be seen at 1.1124 (9 DMA), an upside break can trigger rise towards 1.1191 (21 DMA).On the downside, immediate support is seen at 1.1026 (Aug 2nd Low), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling held close to 30-month lows against the dollar on Friday as a shrinking of Britain’s ruling Conservative Party’s majority in parliament added to worries over domestic politics three months before Britain is due to exit the European Union. Britain’s pro-European Union Liberal Democrats won a parliamentary seat from the governing Conservatives, a blow to Prime Minister Boris Johnson in his first electoral test since taking office.In late US trading, sterling was flat at $1.2156, not far from a 30-month low of $1.2080 hit on Thursday. Immediate resistance can be seen at 1.2161 (5 DMA), an upside break can trigger rise towards 1.2306 (11 DMA).On the downside, immediate support is seen at 1.2075 (Aug 1st Low), a break below could take the pair towards 1.2000 (Psychological level).
USD/CAD: The Canadian dollar weakened to a six-week low against its U.S. counterpart on Friday after domestic data showed a decrease in exports and as investors weighed the prospect of additional U.S. tariffs on Chinese goods.Canada posted a narrower trade surplus in June as exports fell by 5.1%. It was the first drop for exports since February and reversed a big increase in May. Canada exports many commodities, including oil, so its economy could be hurt by an escalation of trade tensions. On Thursday, U.S. President Donald Trump said he would slap 10% tariffs on $300 billion of Chinese imports starting Sept. 1.The Canadian dollar was trading 0.2% lower at 1.3207 to the greenback. Immediate resistance can be seen at 1.3266 (Daily High), an upside break can trigger rise towards 1.3303 (100 DMA).On the downside, immediate support is seen at 1.3186 (5 DMA), a break below could take the pair towards 1.3154 (11 DMA).
USD/JPY: The dollar weakened against the Japanese yen on Friday, after U.S. employment growth in July slowed as expected, which along with re-escalated U.S.-Chinese trade tensions, may make a case for the Federal Reserve to cut interest rates again in September. Nonfarm payrolls increased by 164,000 jobs in July, less than the month prior, and wages increased modestly, the Labor Department aid. The report came a day after President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, a move that led financial markets to almost fully price in a September rate cut. The dollar was 0.72 percent lower versus the Japanese yen at 106.56. Strong resistance can be seen at 108.12 (11 DMA), an upside break can trigger rise towards 109.57 (100 DMA).On the downside, immediate support is seen at 106.50 (Daily), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
A slump in shares of automakers, miners and chipmakers led European stocks to their biggest losses in more than seven months on Friday after Washington’s announcement of new tariffs on Chinese goods raised fears of a further hit to global growth.
The UK's benchmark FTSE 100 closed down by 2.34 percent, Germany's Dax ended down by 3.11 percent, and France’s CAC finished the down by 3.57 percent.
US stocks tumbled to a one-month low on Friday after a sharp escalation in U.S.-China trade tensions and a tepid July jobs report renewed fears of slowing economic growth and raised bets of further interest rate cuts this year.
Dow Jones closed down by 0.28 percent, S&P 500 ended down 0.66 percent, Nasdaq finished the day down by 1.35 percent.
Treasuries Recap
The spread between short- and long-dated U.S. Treasuries yields contracted on Friday as data pointed to slower jobs growth in July, but a slight gain in wages soothed concerns about consumer spending.
At 11:07 a.m. (1507 GMT), the spread between two-year and 10-year yields narrowed 2.5 basis points to 13.2 is points after being as tight as 10.5 basis points earlier Friday.
Commodities Recap
Gold steadied on Friday in seesaw trade as the dollar retreated on lackluster U.S. jobs data, putting bullion on course to notch its best week in six weeks following a surge of more than 2% in the previous session as U.S.-China trade relations soured further.
Spot gold was steady at $1,444.86 per ounce at 01:41 p.m. EDT (1741 GMT), retracing earlier declines of about 1%. The yellow metal is up nearly 2% so far this week.U.S. gold futures settled 1.8% higher at $1,457.50.
Oil prices were up 3% on Friday, a partial rebound from their biggest daily drop in several years on U.S. President Donald Trump's vow to impose more tariffs on Chinese imports.
Brent crude was up $1.65, or 2.7%, to $62.15 a barrel by 1:32 p.m. EDT (1732 GMT). The global benchmark slid more than 7% on Thursday, the steepest daily drop in more than three years.
The U.S. crude benchmark gained $1.74, or 3.2%, to $55.69 a barrel, a day after tumbling nearly 8%, the biggest loss in more than four years.
