Market Roundup
• Canada Jan Full Employment Change 12.6K, 36.5K previous
• Canada Part Time Employment Change -225.4K,-99.0K previous
• US Jan Average Hourly Earnings (MoM) 0.2%,0.3% forecast,0.8% previous
• US Jan Private Nonfarm Payrolls 6K, 50K forecast, -95K previous
• US Jan Nonfarm Payrolls 49K, 50K, -140K previous
• US Jan Manufacturing Payrolls -10K,30K forecast, 38K previous
• Canada Jan Unemployment Rate 9.4%, 8.9% forecast,8.6% previous
• US Jan Government Payrolls 43.0K, -45.0K previous
• Canada Jan Participation Rate 64.7%, 64.9% forecast, 64.9% previous
• US Dec Exports 47.32B, 46.76B previous
• US Dec Imports 48.98B, 50.10B previous
• Canada Jan Trade Balance -1.67B, -3.00B forecast, -3.34B previous
• US Jan Average Weekly Hours 35.0, 34.7 forecast, 34.7 previous
• US Jan Unemployment Rate 6.3%, 6.7% forecast,6.7% previous
• US Jan Average Hourly Earnings (YoY) (YoY) 5.4%,5.1% forecast, 5.1% previous
• US Jan Participation Rate 61.4%, 61.5% previous
• US Dec Trade Balance -66.60B,-65.70B forecast, -68.10B previous
• US Jan U6 Unemployment Rate 11.1%, 11.7% previous
• US Jan Employment Change -212.8K, -47.5K forecast, -62.6K previous
• Canada Jan Ivey PMI -121.00K , 46.7 previous
• Canada Jan Ivey PMI n.s.a -250.00,53.9 previous
Looking Ahead – Economic data (GMT)
•No significant events
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rebounded strongly against dollar on Friday after U.S. jobs report suggested that some traders may have over-played a stronger American recovery from the coronavirus pandemic. The report showed U.S. employment growth rebounded less than expected in January and job losses the prior month were deeper than initially thought, strengthening the argument for additional relief money to aid the recovery from the COVID-19 pandemic. The euro was 0.2% higher at $1.1981 after dipping to $1.1952, a level not seen since Dec. 1. Immediate resistance can be seen at 1.2021 (Daily high), an upside break can trigger rise towards 1.2106 (61.8%fib).On the downside, immediate support is seen at 1.1950 (38.2%fib), a break below could take the pair towards 1.1900 (Psychological level).
GBP/USD Sterling rose higher against the dollar on Friday after the Bank of England avoided sub-zero rates for now, putting the pound on track for its fourth week of gains versus the dollar. Focusing on the prospects for a post-lockdown rebound, the Bank of England gave British lenders at least six months of breathing space on Thursday before negative interest rates are a possibility. Sterling was 0.2% higher at $1.3703 versus the dollar, gaining more than a cent against the greenback since the BOE’s statement in the previous session. Immediate resistance can be seen at 1.3758 (23.6%fib), an upside break can trigger rise towards 1.2800 (Psychological level).On the downside, immediate support is seen at 1.3654 (5DMA), a break below could take the pair towards 1.3593 (38.2%fib).
USD/CAD: The Canadian dollar rallied against its U.S. counterpart on Friday as oil notched a one-year high and investors shrugged off data showing Canada lost far more jobs than expected in January, with the loonie ending a three-week run of weekly declines. Canada shed 212,800 jobs in January, with the declined driven by coronavirus lockdowns in populous Ontario and Quebec, Statistics Canada data showed. The loonie was trading 0.5% higher at 1.2766 to the greenback, or 78.33 U.S. cents, having traded in a range of 1.2765 to 1.2832.Immediate resistance can be seen at 1.2831(Daily high), an upside break can trigger rise towards 1.2882(38.2% retracement level).On the downside, immediate support is seen at 1.2769 (23.6 %fib ), a break below could take the pair towards 1.2678(27th Jan low)
USD/JPY: The dollar initially rose against the Japanese yen on Friday but gave up some ground after a Labor Department report showed U.S. jobs rebounded less than forecast in January. The closely watched employment report showed job losses in December and November were deeper than initially thought, underscoring the need for additional relief money. Despite trending lower against the Japanese yen, the dollar headed for its best weekly gain in three months. The U.S. dollar index stood near a two-month high, up 1.1% so far this week. Strong resistance can be seen at 105.78 (23.6% fib), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 105.40 (38.2%fib), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European stocks were little changed at the end of an upbeat week on Friday, with disappointing U.S. data highlighting the economic impact of the coronavirus pandemic, while in Germany industrial orders declined.
The UK's benchmark FTSE 100 closed down by 0.22 percent, Germany's Dax ended down by 0.03 percent, and France’s CAC finished the up by 0.90 percent.
U.S. stocks rose on Friday with the S&P 500 and the Nasdaq Composite index hitting record highs as a smaller-than-expected rebound in the labor market last month highlighted the need for more government aid to shore up the economy .
Dow Jones closed up by 0.30 percent, S&P 500 ended up by 0.39 percent, Nasdaq finished the day up by 0.57 percent..
Treasuries Recap
The Treasury yield curve steepened on Friday as yields on the benchmark 10-year note soared to levels not seen in nearly a year while two-year yields hit record lows after U.S. jobs data strengthened expectations of more stimulus spending from Washington.
The benchmark 10-year yield was last up 2.6 basis points at 1.1652% having risen to 1.188%, its highest since March 20, 2020.
Commodities Recap
Gold rebounded above the $1,800 psychological level on Friday, helped by a retreat in the dollar and data showing slower-than-expected growth in U.S. employment underpinning the need for additional financial support.
Spot gold climbed 1% to $1,810.26 per ounce by 1:58 p.m. EST (1858 GMT), after falling to its lowest since Dec. 1 on Thursday. U.S. gold futures settled up 1.2% at $1,813.
Oil prices rose about 1% on Friday, after hitting their highest in a year and closing in on $60 a barrel, supported by economic revival hopes and supply curbs by producer group OPEC and its allies.
Brent crude ended the session up 50 cents, or 0.9%, at $59.34 after hitting its highest since Feb. 20 at $59.79. U.S. crude settled up 62 cents, or 1.1%, at $56.85, after reaching $57.29, its highest since Jan. 22 last year.
