News

America’s Roundup : US dollar retreats ahead of payrolls data, Wall Street ends down, Gold edges lower, Oil prices extend rapid slide on demand worries-October 6th,2023

Posted at 06 October 2023 / Categories Market Roundups


Market Roundup

•U.S. weekly jobless claims rise moderately

 •US Indexes: Dow down 0.03%; S&P 500 down 0.13%; Nasdaq down 0.12%

•US Continuing Jobless Claims 1,664K,1,675K forecast, 1,670K previous

•US Imports 314.30B, 316.70B previous

•US Exports 256.00B,251.66B previous

•US Jobless Claims 4-Week Avg. 208.75K, 211.00K previous

•US  Initial Jobless Claims 207K,210K forecast,204K previous

•US Aug Trade Balance  -58.30B,-62.30B  forecast,-65.00B previous

•Canada Aug Trade Balance   0.72B,-1.50B forecast, -0.99B previous

•Canada Aug Exports 64.56B, 60.42B previous

•Canada Aug Imports 63.84B ,61.40B previous

•Canada Sep Ivey PMI n.s.a  54.2,56.8 previous

•Canada Sep Ivey PMI   53.1 ,50.8 forecast,53.5 previous

•US Natural Gas Storage86B, 92B forecast, 90B previous

•US 4-Week Bill Auction 5.310%, 5.290% previous

•US 8-Week Bill Auction 5.360%, 5.330% previous

Looking Ahead Economic Data(GMT)

•05:00   Japan Aug Coincident Indicator (MoM)   -1.4% previous

•05:00   Japan Aug Leading Index (MoM) -0.6% previous

•05:00   Japan Leading Index 109.0 forecast, 108.2 previous

Looking Ahead Events And Other Releases(GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro edged higher on Thursday  as the dollar  stalled as investors looked to U.S. nonfarm payrolls data   for potential catalysts. Friday's closely-watched jobs report comes on the heels of a run of resilient U.S. economic data which has reinforced the Federal Reserve's hawkish messaging of higher-for-longer rates and sent the greenback   surging.The dollar index , which earlier in the week hit a roughly 11-month high of 107.34, last settled at 106.37, but remained on track for 12 straight weeks of gains. The euro last traded at $1.0542 against dollar and was on track for a 0.25% decline for the week, extending its run of losses into a 12th week. Immediate resistance can be seen at 1.0551 (38.2%fib), an upside break can trigger rise towards 1.0570(5DMA).On the downside, immediate support is seen at  1.0500 (Psychological level), a break below could take the pair towards 1.0463(23.6%fib).

GBP/USD: The pound initially gained against the dollar but gave up some ground on Thursday after data showed the biggest slump in UK construction activity since 2020, while a Bank of England survey showed British firms see prices rising more slowly.The S&P Global/CIPS UK construction Purchasing Managers' Index (PMI) tumbled to 45.0 in September from August's 50.8, its lowest since May 2020, when COVID-19 pandemic restrictions were in full force. The figure was well below the 50 level that separates contraction from expansion. Economists polled had forecast a much more modest decline to 49.9. Sterling was up about 0.1% against the dollar at $1.2148, holding just above Wednesday's 6-1/2 month low of $1.20385. Immediate resistance can be seen at 1.2205(38.2%fib), an upside break can trigger rise towards 1.2278 (50%fib).On the downside, immediate support is seen at 1.2105 (23.6%fib), a break below could take the pair towards 1.2040(Lower BB). 

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, rebounding from an earlier six-month low, as bond yields steadied for a second day and data showed Canada's trade balance swinging to a surprise surplus in August. Friday. Data on Thursday showed that Canada posted a C$718 million ($521.88 million) trade surplus in August as exports posted solid gains a month after labor strikes shut down ports on the West Coast. Canadian employment data is also due for release on Friday. The price of oil, one of Canada's major exports, extended the previous session's sharp decline. U.S. crude oil futures settled 2.3% lower at $82.31 a barrel. The loonie was trading 0.2% higher at 1.3715 to the greenback, or 72.91 U.S. cents after earlier touching its weakest intraday level since March 24 at 1.3785. Immediate resistance can be seen at 1.3732 (Oct 3rd high), an upside break can trigger rise towards 1.3782 (23.6%fib).On the downside, immediate support is seen at 1.2688 (38.2% fib), a break below could take the pair towards 1.3708(9DMA).

USD/JPY: The dollar dipped against yen  on Thursday as investors looked ahead of the release of key U.S. jobs data on Friday that could help determine whether the Federal Reserve hikes interest rates again next month. U.S. data on initial claims for state unemployment benefits pointed to still-resilient labor market conditions, a day after a report showing U.S. private payrolls increased less than expected in September.Friday's monthly payrolls report could be the week's most important economic news, however, investors remained concerned about whether the Federal Reserve will keep rates higher for longer. Strong resistance can be seen at 148.78(38.2%fib) an upside break can trigger rise towards 150.09 (Oct 3rd high).On the downside, immediate support is seen 148.30(21DMA), a break below could take the pair towards 147.65 (50%fib).

Equities Recap

European shares ended higher on Thursday after a three-day sell-off as both U.S. Treasury and euro zone bond yields retreated, while a fall in oil prices pushed airline stocks higher.

UK's benchmark FTSE 100 closed up by  0.53  percent, Germany's Dax ended down by 0.20 percent, France’s CAC finished the day up  by 0.02 percent.                       

U.S. stocks ended just slightly lower after bouncing off session lows on Thursday as investors awaited Friday's monthly jobs report and further possible clues on the outlook for interest rates..

Dow Jones closed down  by  0.03% percent, S&P 500 closed down by 0.13 % percent, Nasdaq settled down  by 0.12%  percent.

Commodities Recap

Gold prices edged lower for a ninth straight session on Thursday, as U.S. data indicating tight labor market conditions raised worries about the Federal Reserve keeping interest rates higher for sometime.

Spot gold eased 0.1% to $1,819.98 per ounce by 2:04 p.m. EDT (1804 GMT). U.S. gold futures settled 0.2% lower at $1,831.80 per ounce.

Oil prices fell about 2% on Thursday, extending the previous session's losses of nearly 6%, as worries about fuel demand outweighed an OPEC+ decision to maintain oil output cuts, keeping supply tight.

Global benchmark Brent crude futures and U.S. West Texas Intermediate crude futures have declined about $10 a barrel in less than 10 days after edging close to $100 in late September.

Brent futures settled $1.74, or 2.03%, lower at $84.07, while U.S. West Texas Intermediate crude futures were $1.91, or 2.3%, lower at $82.31.


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