Market Roundup
• US Nonfarm Payrolls (Jun): 57K, 114K forecast, 129K previous.
•US Unemployment Rate (Jun): 4.2%, 4.3% forecast, 4.3% previous.
• US Average Hourly Earnings (MoM) (Jun): 0.3%, 0.3% forecast, 0.3% previous.
• US Initial Jobless Claims: 215K, 219K forecast, 216K previous.
• US Private Nonfarm Payrolls (Jun): 49K, 110K forecast, 97K previous.
• US Average Hourly Earnings (YoY) (Jun): 3.5%, 3.5% forecast, 3.4% previous.
• US U6 Unemployment Rate (Jun): 7.9%, 8.1% previous.
• US Participation Rate (Jun): 61.5%, 61.8% previous.
• US Continuing Jobless Claims: 1,814K, 1,810K forecast, 1,812K previous.
• US Manufacturing Payrolls (Jun): 3K, 3K forecast, -2K previous.
• US Average Weekly Hours (Jun): 34.3, 34.3 forecast, 34.3 previous.
• US Government Payrolls (Jun): 8.0K, 32.0K previous.
• US Jobless Claims 4-Week Avg.: 222.00K, 224.50K previous.
• Canada S&P Global Manufacturing PMI (Jun): 53.0, 52.9 previous.
• US Factory Orders (MoM) (May): -1.3%, -1.7% forecast, 5.3% previous.
• US Factory Orders Ex Transportation (MoM) (May): 1.9%, 1.7% previous.
• US Durables Excluding Defense (MoM) (May): -4.6%, -4.6% previous.
• US Durables Excluding Transport (MoM) (May): 1.4%, 1.3% previous.
• US All Car Sales (Jun): 2.70M, 2.66M previous.
• US All Truck Sales (Jun): 13.82M, 13.42M previous.
Looking Ahead Economic Data (GMT)
•16:50 US 4-Week Bill Auction: 3.610% previous.
•16:50 US 8-Week Bill Auction: 3.660% previous.
•18:00 US Baker Hughes Oil Rig Count: 440 previous.
•18:00 US Baker Hughes Total Rig Count: 573 previous.
Looking Ahead Events And Other Releases (GMT)
•11:00 EU ECB's Elderson Speaks
Currency Summaries
EUR/USD : The euro strengthened on Thursday as the dollar tumbled after U.S. jobs growth came in weaker than expected.Nonfarm payrolls increased by 57,000 jobs in June, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Thursday.That was about half what economists had anticipated. May job gains were revised down to 129,000, from the 172,000 initially reported.Traders of short-term interest-rate futures now see less than a 20% chance of a rate hike in July, though they continue to see an increase in the policy rate in September as likely. The dollar index , which measures the greenback against a basket of currencies, was last down about 0.6%.. Immediate resistance can be seen at 1.1475(SMA 20), an upside break can trigger rise towards 1.1495(50%fib).On the downside, immediate support is seen at 1.1368(38.2%fib), a break below could take the pair towards 1.1291(Lower BB).
GBP/USD: The British pound rose higher against the U.S. dollar on Thursday as the dollar tumbled after U.S. jobs growth came in weaker than expected. U.S. job growth slowed more than expected in June and payroll gains for the prior two months were revised lower, pointing to a cooling labor market and prompting financial markets to dial back expectations for a near-term interest rate hike from the Federal Reserve. Nonfarm payrolls increased by 57,000 jobs last month after a downwardly revised 129,000 rise in May, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls advancing 110,000 after a previously reported 172,000 increase in May. The Labor Department's closely watched employment report on Thursday showed the unemployment rate dropped to 4.2% last month, that was because about 720,000 people left the labor force, which pushed down the participation rate to the lowest level in more than five years. Some economists said the slowdown in job growth was probably a delayed reaction to the Middle East war.Immediate resistance can be seen at 1.3389(Daily high), an upside break can trigger rise towards 1.3485(50%fib).On the downside, immediate support is seen at 1.3343(38.2%fib), a break below could take the pair towards1.3296(SMA 20).
AUD/USD: The Australian dollar strengthened against dollar on Thursday as a softer-than-expected employment report for June tempered expectations of interest rate hikes by the Federal Reserve.. The closely watched nonfarm payrolls report showed the U.S. economy added 57,000 jobs last month, compared with economists' estimates for a rise of 110,000. The unemployment rate was 4.2%, in line with expectations of 4.3%.The closely watched nonfarm payrolls report showed the U.S. economy added 57,000 jobs last month, compared with economists' estimates for a rise of 110,000. The unemployment rate was 4.2%, in line with expectations of 4.3%.Markets had been concerned that stronger labor market data could give the Fed more room to focus squarely on price pressures, especially after an oil shock stemming from the U.S.-Iran war raised inflation concerns. Immediate resistance can be seen at 0.6948(June 2nd high), an upside break can trigger rise towards 0.6986(SMA 20).On the downside, immediate support is seen at 0.6882(61.8%fib), a break below could take the pair towards 0.6822(Lower BB).
USD/JPY: The U.S. dollar slipped lower against yen on Thursday as traders weighed a shift in intervention strategy by Japan's Ministry of Finance and speculated whether Tokyo had already moved. Japanese officials were abandoning their habit of telegraphing intervention risks, instead signalling a more targeted campaign to squeeze speculators and raise the cost of betting against the yen.Officials were also avoiding any suggestion of a specific "line in the sand" exchange-rate level that would trigger action, in a more aggressive approach aimed at keeping traders guessing. Immediate resistance can be seen at 162.73(23.6%fib) an upside break can trigger rise towards 163.00(Psychological level) .On the downside, immediate support is seen at 160.81(38.2%fib) a break below could take the pair towards 159.58(50%fib).
Equities Recap
European shares rebounded on Friday after a softer-than-expected June employment report eased the likelihood of a rate hike from the U.S. Federal Reserve.
UK's benchmark FTSE 100 was up by 1.96 percent, Germany's Dax was up by 1.97 percent, France’s CAC was up by 1.79 percent.
Commodities Recap
Gold extended its gains, climbing more than 2% on Thursday, after weaker-than-expected U.S. non-farm payrolls data reduced expectations of Federal Reserve interest rate hikes this year.
Spot gold was up 2.4% at $4,126.97 per ounce, as of 9:00 a.m. EDT (1300 GMT).U.S. gold futures inched 1.4% higher to $4,139.20.
Oil prices fell nearly 2% to a four-month low on Thursday as concerns over potential supply disruptions eased after Qatar said Iran and the United States had made progress in talks over the Strait of Hormuz, easing fears of disruptions to one of the world's most important oil shipping routes.
Brent futures were 91 cents, or 1.3% lower, at $70.66 a barrel at 1316 GMT, while U.S. West Texas Intermediate crude fell $1.04, or 1.5%, to $67.54 a barrel.
