Market Roundup
• German Trade Balance (Jun) 15.4B, 17.2B forecast, 19.4B previous
•Germany Industrial Production (MoM) (Jun) 0.2%, 0.2% forecast, 0.7% previous
•Germany Imports (MoM) (Jun) 4.4%, 1.0% forecast, -2.6% previous
•Germany Exports (MoM) (Jun) 0.9%, 0.2% forecast, 1.1% previous
•Germany Industrial Production (YoY) (Jun) 0.00%, -0.11% previous
•France Trade Balance (Jun) -5.8B, -6.5B forecast, -7.7B previous
•France Exports (Jun) 54.5B, 53.2B previous
•France Imports (Jun) 60.4B, 60.9B previous
•France Current Account (Jun) -1.40B, -1.20B previous
•Switzerland SECO Consumer Climate (Q3) -33, -34 forecast, -40 previous
•Switzerland Foreign Reserves (USD) (Jul) 768.3B, 758.9B previous
Looking Ahead Events And Other Releases (GMT)
• US Average Hourly Earnings (MoM) (Jul) 0.3% forecast, 0.3% previous
•US Nonfarm Payrolls (Jul) 85K forecast, 57K previous
•US Unemployment Rate (Jul) 4 4.2% forecast, 4.2% previous
•US Private Nonfarm Payrolls (Jul) 78K forecast, 49K previous
•US Average Hourly Earnings (YoY) (Jul) 3.5% forecast, 3.5% previous
•US Participation Rate (Jul) 61.5% previous
•US U6 Unemployment Rate (Jul) 7.9% previous
•US Manufacturing Payrolls (Jul) 4K forecast, 3K previous
•US Government Payrolls (Jul) 8.0K previous
•US Average Weekly Hours (Jul) 34.3 forecast, 34.3 previous
•Canada Unemployment Rate (Jul) 6.5% forecast, 6.5% previous
•Canada Employment Change (Jul) 18.2K forecast, 18.2K previous
•Canada Part Time Employment Change (Jul) 17.5K previous
•Canada Full Employment Change (Jul) 0.6K previous
•Canada Avg Hourly Wages Permanent Employee (Jul) 3.7% previous
•Canada Participation Rate (Jul) 65.0% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro edged higher against dollar on Friday as investors looked ahead of the U.S. monthly payrolls report. U.S. nonfarm payrolls are forecast to have risen by 80,000 last month after an increase of 57,000 in June, according to a Reuters survey of economists. The unemployment rate is expected to hold steady at 4.2%.The closely watched payrolls report could offer fresh clues on the Federal Reserve's policy path as markets assess the possibility of another interest rate hike. Meanwhile,tensions remained elevated in the Gulf. Saudi Arabia expects coordinated attacks by Iraqi militias from the north and Yemen's Houthis from the south under the supervision of Iran's Revolutionary Guards, a senior Saudi official said.Immediate resistance can be seen at 1.1535(50%fib), an upside break can trigger rise towards 1.1600(psychological level).On the downside, immediate support is seen at 1.1442(38.2%fib), a break below could take the pair towards 1.1422(SMA 20).
GBP/USD : The British pound dipped against the U.S. dollar on Friday as investors awaiting the closely watched monthly U.S. payrolls report due later in the day.U.S. nonfarm payrolls are forecast to have risen by 80,000 last month after an increase of 57,000 in June, according to a Reuters survey of economists. The data could provide clues about the Federal Reserve's interest rate path ahead as markets are weighing the chance of a potential interest rate hike.Investors next week will also get fresh UK economic data, with a gross domestic product reading for both the second quarter and the month of June due Thursday. The data could provide hints about how the economy has fared throughout the Iran war so far.. Immediate resistance can be seen at 1.3474(38.2%fib), an upside break can trigger rise towards 1.3543(23.6%fib).On the downside, immediate support is seen at 1.3414(50%fib), a break below could take the pair towards1.3395(SMA 20).
AUD/USD: The Australian dollar edged higher on Friday as investors remained cautious ahead of the release of the closely watched U.S. July employment report, which is expected to provide fresh guidance on the Federal Reserve's interest-rate outlook.U.S. nonfarm payrolls are expected to have risen by 80,000 in July after a 57,000 increase in June, while the unemployment rate is forecast to remain unchanged at 4.2%.Adding to geopolitical tensions, Yemen's Houthi movement claimed to have launched large-scale ballistic missile and drone attacks, raising concerns over potential disruptions to global energy supplies. Immediate resistance can be seen at 0.6971(SMA20), an upside break can trigger rise towards 0.6984(50%fib).On the downside, immediate support is seen at 0.6917 (38.2%fib), a break below could take the pair towards 0.6899(Lower BB).
USD/JPY: The U.S. dollar eased on Friday as traders awaited the U.S. nonfarm payrolls report for fresh direction.The monthly U.S. payrolls report, due later on Friday, could provide more clues on the Fed's rate path.Japanese authorities carried out their largest-ever single-day yen-buying intervention in April, using around $40 billion of foreign currency reserves to purchase the yen as they resumed aggressive efforts to slow its decline.The intervention provided temporary support for the yen, pushing it up from a near two-year low of 160.725 per dollar to around 155 by May 6, but it failed to change the currency's broader weakening trend.Traders are closely monitoring the risk of further yen-buying intervention as the Japanese currency weakens past 158 against the dollar, with upcoming U.S. jobs data expected to provide clues on the Fed's future policy direction. Immediate resistance can be seen at 157.82 (38.2%fib), an upside break can trigger rise towards 158.88(May 15th high).On the downside, immediate support is seen at 157.31(Daily low) a break below could take the pair towards 157.00 (Psychological level).
Equities Recap
European shares climbed to a record intraday high on Thursday as investors evaluated prospects for a U.S.-Iran peace deal and progress toward reopening the Strait of Hormuz, while upbeat corporate earnings added to the positive market sentiment.
UK's benchmark FTSE 100 was up by 0.73percent, Germany's Dax was up by 0.81 percent, France’s CAC was up by 0.45 percent.
Commodities Recap
Gold climbed on Friday and was on course for its biggest weekly gain since January, as easing inflation concerns linked to a potential Middle East peace deal reduced expectations for further U.S. interest rate hikes, while investors awaited the closely watched U.S. nonfarm payrolls report for fresh policy clues.
Spot gold was up 2.1% at $4,326.59 per ounce by 1130 GMT, after hitting a seven-week high on Thursday. Prices have gained over 7% for the week so far.
Oil prices eased on Friday as investors assessed signs that Gulf states and Iran were nearing an agreement to temporarily reopen the Strait of Hormuz, a move seen as paving the way for broader negotiations aimed at ending the war with Iran.
Brent crude futures were down 75 cents, or 0.9%, at $81.74 a barrel at 1141 GMT. U.S. West Texas Intermediate futures fell 66 cents, or 0.9%, to $76.63.
