USD/JPY nears 162.00 as Japan holds back on FX intervention 
Market Roundup
• HCOB Italy Services PMI (Jun): 50.2, 50.3 forecast, 49.4 previous.
• HCOB Italy Composite PMI (Jun): 50.8, 50.4 previous.
• HCOB France Services PMI (Jun): 46.8, 47.4 forecast, 44.3 previous.
• HCOB France Composite PMI (Jun): 47.2, 47.6 forecast, 44.9 previous.
• HCOB Germany Services PMI (Jun): 48.6, 46.8 forecast, 48.1 previous.
• HCOB Germany Composite PMI (Jun): 49.5, 48.0 forecast, 48.8 previous.
• HCOB Eurozone Services PMI (Jun): 49.4, 48.9 forecast, 47.7 previous.
• HCOB Eurozone Composite PMI (Jun): 50.0, 49.5 forecast, 48.5 previous.
•S&P Global UK Composite PMI (Jun): 49.3, 49.4 forecast, 49.7 previous.
•S&P Global UK Services PMI (Jun): 48.8, 48.7 forecast, 49.3 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 Friday as the dollar dipped after a tepid U.S. jobs report cooled market expectations for a near-term Federal Reserve interest rate hike. U.S. job growth slowed sharply in June and payroll gains for the prior two months were revised lower, according to data released on Thursday, pointing to a cooling labour market.The unemployment rate dropped to 4.2% last month from 4.3% in May as workers left the labour force, pushing the participation rate to the lowest level in more than five years.The tepid jobs data doused traders' expectations of an imminent rate hike and raised the chances that the Fed will keep rates on hold until October.Fed funds futures are pricing an implied 46.8% probability that the U.S. central bank will keep rates steady at its meeting on September 15 to 16, compared to a 35.8% chance a day earlier, according to the CME Group's FedWatch tool.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 was headed for its biggest weekly jump in 12 weeks against the U.S. dollar on Friday, helped by easing domestic political risk and soft U.S. labour market data.British markets had shown signs of unease when Andy Burnham, the only Labour lawmaker to say he wants to replace outgoing Prime Minister Keir Starmer, gained support for a possible leadership challenge.Burnham had previously stated that the country had to get "beyond this thing of being in hock to the bond markets", worrying some investors that thought he would abandon the government's borrowing pledges. Sterling GBP= was up 0.1% at $1.3357, taking its weekly gain to 1.2%, its biggest weekly jump against the dollar since early April .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 the U.S. dollar on Friday as broad-based greenback weakness followed softer-than-expected U.S. non-farm payrolls data, reinforcing expectations that the Federal Reserve may adopt a more cautious policy stance.U.S. job growth slowed sharply in June, while payroll figures for the previous two months were revised lower, pointing to a cooling labour market. The weaker employment report prompted investors to scale back expectations for further Federal Reserve tightening, boosting demand for higher-yielding currencies such as the Australian dollar.Market expectations shifted notably after the data release, with the probability of a September Federal Reserve rate hike falling to around 54% from 67% before the report. Supporting the Australian currency, domestic data showed improving business activity. Australia's S&P Global Composite PMI was revised up to 50.4 in June from the preliminary estimate of 49.8, reflecting a return to expansion in the services sector, where the PMI rose to 50.5 from 48.7, alongside stronger manufacturing growth, with the PMI increasing to 51.5 from 50.7. Immediate resistance can be seen at 0.6952 (38.2%fib), 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 Friday as yen firmed after Finance Minister Satsuki Katayama reiterated that authorities stand ready to intervene at any time to support the currency. Finance Minister Satsuki Katayama said Tokyo was in regular contact with Washington on foreign exchange issues and remained ready to support the yen after it clawed its way back from 40-year lows.The yen got some relief from broad dollar weakness after Thursday's tepid U.S. jobs report pushed back market bets for imminent interest rate hikes by the Federal Reserve.The currency's prolonged weakness has become a growing headache for policymakers, inflating the cost of imported raw materials and worsening the squeeze on households and businesses already grappling with higher energy prices linked to the Iran war. 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 hovered near record highs on Friday and were on track for their biggest weekly gain in more than a month, as gains in cyclical stocks and fading expectations of an imminent U.S. interest rate hike boosted investor sentiment.
UK's benchmark FTSE 100 was up by 0.13 percent, Germany's Dax was up by 0.87 percent, France’s CAC was up by 0.38 percent.
Commodities Recap
Gold prices rose on Friday and were on track for their first weekly gain in five weeks, as weaker-than-expected U.S. jobs data reduced expectations of a near-term Federal Reserve interest rate hike, boosting demand for the precious metal.
Spot gold was up 1.3% at $4,174.21 per ounce at 1241 GMT, after hitting its highest since June 23. Bullion held above its 21-day moving average and is up over 2% for the week so far.U.S. gold futures for August delivery gained 1.5% to $4,186.80
Oil prices were little changed on Friday and remained on track for a largely flat weekly performance, as investors pinned their hopes on progress in U.S.-Iran peace negotiations that could ease geopolitical tensions and reduce concerns over potential supply disruptions.
Brent futures were down 8 cents, or 0.11%, at $71.72 a barrel by 0109 GMT. West Texas Intermediate was down 22 cents, or 0.32%, at $68.47 a barrel.
