Market Roundup
•U.S. unemployment rate falls to 3.5%
•US indexes fall: Dow down 2.1%, S&P 500 2.8%, Nasdaq 3.8%
•Canada Sep Part Time Employment Change 15.4K, 37.5K previous
•Canada Sep Full Employment Change 5.7K,-77.2K previous
•US Sep Average Hourly Earnings (MoM) 0.3%,0.3% forecast,0.3% previous
•US Sep Private Nonfarm Payrolls 288K, 265K forecast,308K previous
•US Sep Nonfarm Payrolls 263K, 250K forecast, 315 previous
•US Sep Manufacturing Payrolls 22K, 19K forecast, 22K previous
•Canada Sep Participation Rate 64.7%,64.8% previous
•Canada Sep Unemployment Rate 5.2%,5.4% forecast, 5.4% previous
•US Sep Average Weekly Hours 34.5,34.5 forecast, 34.5 previous
•US Sep Unemployment Rate 3.5%,3.7% forecast, 3.7% previous
•US Sep Average Hourly Earnings (YoY) (YoY) 5.0%,5.1% forecast, 5.2% previous
•Canada Sep Employment Change 21.1K,20.0K forecast, -39.7K previous
•US Sep Participation Rate 62.3%, 62.4% previous
•US Aug Wholesale Trade Sales (MoM) 0.1%,0.4% forecast, -1.4% previous
Looking Ahead – Economic data (GMT)
•01:45 China Sep Caixin Services PMI 55.0 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped against dollar on Friday after U.S. data showing employers hired more workers than expected in September, suggesting the Federal Reserve will likely stick to its aggressive tightening policy for now. Nonfarm payrolls increased by 263,000 jobs last month, the Labor Department said in its closely watched employment report. Data for August was unrevised to show 315,000 jobs added as previously reported. Economists polled by Reuters had forecast 250,000 job gains, with estimates ranging from as low as 127,000 to as high as 375,00. The euro fell against the dollar, extending losses after the U.S. jobs report, and was last down 0.6% at $0.9735. Immediate resistance can be seen at 0.9799(9DMA), an upside break can trigger rise towards 0.9893(38.2%ib).On the downside, immediate support is seen at 0.9732(23.6%fib), a break below could take the pair towards 0.9578 (Lower BB).
GBP/USD: Sterling edged declined against dollar on Friday after a better-than-expected U.S. jobs report cemented the Federal Reserve’s rate hike trajectory. Nonfarm payrolls increased by 263,000 jobs last month, the Labor Department said in its closely watched employment report on Friday, above the 250,000 estimate of economists polled by Reuters. The unemployment rate fell to 3.5% from the 3.7% in the prior month. Expectations the Fed will raise interest rates by 75 basis points (bps) rose following the data as fed funds futures implied a 90% chance the policy rate will be increased to a 3.75% to 4% range at its November meeting, up from the 85% before the data.Sterling was down 0.9% at $1.1060, having fallen 1.4% overnight. Immediate resistance can be seen at 1.1227(38.2%fib), an upside break can trigger rise towards 1.1446(38.2%fib).On the downside, immediate support is seen at 1.1057 (11DMA), a break below could take the pair towards 1.0958(23.6%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, adding to this week’s gains, as oil prices rose and data showed Canada’s economy adding jobs for the first time in four months. The price of oil, one of Canada’s exports, was supported by the OPEC+ decision to make its largest supply cut since 2020. U.S. crude futures were up 4.7% at $92.57 a barrel. The Canadian economy added 21,100 jobs in September, ending a three-month streak of losses, while the jobless rate dropped to 5.2% from 5.4%. The loonie was trading 0.3% higher at 1.37 to the greenback . For the week, it was up 0.9%, after posting weekly declines in the three previous weeks. Immediate resistance can be seen at 1.3777 (38.2%fib), an upside break can trigger rise towards 1.3833 (Oct 3rd high).On the downside, immediate support is seen at 1.3670(50%fib), a break below could take the pair towards 1.3552 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as investors bet on another strong U.S. non-farm payrolls report that should keep the Federal Reserve on an aggressive tightening path for some time. Nonfarm payrolls rose by 263,000 jobs, more than the 250,000 figure economists polled by Reuters had forecast. Money markets raised to 92% the probability of a fourth straight 75 basis-point rate hike when Fed policymakers meet on Nov. 1-2, up from 83.4% before the data. The dollar reversed early losses against the Japanese yen and was last up 0.2% at 145.42 yen. The dollar hit a 24-year peak of 145.90 yen last month .Strong resistance can be seen at 144.50 (23.6% fib), an upside break can trigger rise towards 145.93 (Higher BB).On the downside, immediate support is seen at 144.44 (38.2% fib ), a break below could take the pair towards 143.48(50% fib).
Equities Recap
European stocks closed notably lower on Friday after data from U.S. Labor Department showing a stronger than expected growth in U.S. non-farm payroll in the month of September raised concerns the Fed will continue with its aggressive interest rate hikes in the coming months.
The UK's benchmark FTSE 100 closed down by 0.09 percent, Germany's Dax ended up by 1.59 percent, and France’s CAC finished the down by 1.17 percent.
U.S. stocks tumbled on Friday after a stronger-than-expected jobs report locked in expectations that the Federal Reserve is sticking with a steady diet of rate hikes, while supply cuts continued to boost oil prices.
Dow Jones closed down by 2.11 percent, S&P 500 ended down 2.80 percent, Nasdaq finished the day down by 3.80 percent.
Commodities Recap
Gold prices fell on Friday, after a better-than-expected U.S. jobs report cemented expectations the Federal Reserve would implement steep interest rate hikes.
Spot gold was down 0.6% at $1,700.03 per ounce, as of 12:37 p.m. EDT (1802 GMT). Prices have risen about 2.4% so far this week.U.S. gold futures settled 0.7% lower at $1,709.30.
Oil prices jumped about 4% to a five-week high on Friday, lifted again by an OPEC+ decision this week to make its largest supply cut since 2020 despite concern about a possible recession and rising interest rates.
Brent futures rose $3.50, or 3.7%, to settle at $97.92 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $4.19, or 4.7%, to end at $92.64.
