Posted at 07 October 2023 / Categories Market Roundups
Market Roundup
•U.S. nonfarm payrolls surge 336,000 in September
•U.S. wage growth sees moderate rise
•November rate hike odds increase after jobs data
•US Sep U6 Unemployment Rate 7.0% ,7.1% previous
•Canada Sep Participation Rate 65.6%,65.5% previous
•Canada Sep Unemployment Rate 5.5%,5.6% forecast,5.5% previous
•Canada Sep Sep Avg hourly wages Permanent employee5.3%, 5.2% previous
•Canada Sep Part Time Employment Change 47.9K, 7.8K previous
•Canada Sep Employment Change 63.8K , 20.0K forecast, 39.9K previous
•US Sep Average Hourly Earnings (MoM) 0.2%, 0.3% forecast, 0.2% previous
•US Sep Participation Rate 62.8%,62.8% previous
•US Sep Average Hourly Earnings (YoY) (YoY) 4.2%,4.3% forecast, 4.3% previous
•US Sep Unemployment Rate 3.8%, 3.7% forecast, 3.8% previous
•US Sep Government Payrolls 73.0K, 8.0K previous
•US Sep Average Weekly Hours 34.4,34.4 forecast, 34.4 previous
•US Sep Private Nonfarm Payrolls 263K, 160K forecast,179K previous
•US Sep Nonfarm Payrolls 336K, 170K forecast ,187K previous
•US Sep Manufacturing Payrolls 17K,5K forecast , 16K previous
•U.S. Baker Hughes Oil Rig Count 497,502 previous
•U.S. Baker Hughes Total Rig Count 619,623 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Eevnts And Other Release(GMT)
• No events ahead
Currency Summaries
EUR/USD: The euro edged higher on Friday as the dollar eased as investors assessed Friday's jobs report that showed U.S. hiring rose broadly in September but also that wage growth is slowing. Data showed U.S. nonfarm payrolls increased by 336,000 jobs last month. The numbers for August were revised higher to show 227,000 jobs added instead of the previously reported 187,000. Economists polled had forecast September payrolls rising by 170,000 jobs. The dollar's recent strength has been underpinned by a rapid sell-off in U.S. government bonds, which sent yields to multi-year highs. For the week, the dollar index was down 0.1%, set to snap an 11-week streak of gains that has helped it advance about 6%. Immediate resistance can be seen at 1.0607 (50%fib), an upside break can trigger rise towards 1.0680(61.8%fib).On the downside, immediate support is seen at 1.0547(c), a break below could take the pair towards 1.0471(23.6%fib).
GBP/USD: Sterling ticked a fraction higher against the dollar on Friday after a blowout U.S. payrolls report spurred expectations of more tightening by the Federal Reserve. U.S. Labor Department's report showed non-farm payrolls increased by 336,000 jobs in September on a monthly basis, beating expectations of 170,000 additions, according to a poll of economists.The day's data also showed a moderation in wages, which may have been because most of the jobs added last month were in lower-paying industries.Market watchers have been weighing whether the Fed may be done hiking interest rates after a recent surge in long-term U.S. Treasury yields. Benchmark 10-year U.S. Treasury yields hit 16-year highs on Friday. Immediate resistance can be seen at 1.2245 ( 38.2%fib), an upside break can trigger rise towards 1.2245 (50%fib).On the downside, immediate support is seen at 1.2172 (5DMA), a break below could take the pair towards 1.2142(23.6%fib).
USD/CAD: The Canadian dollar rallied against its U.S. counterpart on Friday, clawing back some of its weekly decline, as stronger-than-expected domestic jobs data boosted expectations for further interest rate hikes by the Bank of Canada. Canada's economy more than tripled expectations by adding 63,800 jobs in September and wages continued to soar, data showed, upping the chances for another rate hike. The price of oil, one of Canada's major currencies, settled 0.6% higher at $82.79 a barrel, recouping some recent losses, while Canadian government bond yields moved higher across much of the curve. The loonie was trading 0.4% higher at 1.3650 to the greenback, or 73.26 U.S. cents, extending its recovery from a six-month low at 1.3785 the day before. Immediate resistance can be seen at 1.3708 (38.2% fib), an upside break can trigger rise towards 1.3769(23.6%fib).On the downside, immediate support is seen at 1.3654 (50% fib), a break below could take the pair towards 1.3600(61.8% fib).
USD/JPY: The dollar strengthened against yen on Friday after robust U.S. jobs data raised worries over another U.S. rate hike . Jobs growth for September nearly doubled expectations as nonfarm payrolls increased by 336,000 for the month, strengthening views that policymakers will need to keep interest rates elevated to cool inflation. Traders are pricing in around a 29% chance of another rate hike from the Fed this year, according to the CME Fedwatch tool. The dollar was 0.54 % higher at 149.31 yen, hovering close to the 150 mark that traders have been on watch for weeks for a possible intervention by Japanese officials to combat a sustained depreciation in the yen. Strong resistance can be seen at 149.47(38.2%fib) an upside break can trigger rise towards 150.09 (Oct 3rd high).On the downside, immediate support is seen 148.37(21DMA), a break below could take the pair towards 147.81(50%fib).
Equities Recap
European shares advanced at the end of a turbulent week tracking Wall Street gains, but hit weekly losses, while a hotter-than-expected U.S. jobs report indicated interest rates might remain elevated for longer pushing bond yields higher.
UK's benchmark FTSE 100 closed up n by 0.58 percent, Germany's Dax ended up by 1.60 percent, France’s CAC finished the day up by 0.88 percent.
U.S. stocks rallied on Friday, led by technology shares to a sharply higher close as investors assessed a jobs report that showed U.S. hiring rose broadly in September with slowing wage growth.
Dow Jones closed up by 0.87% percent, S&P 500 closed up by 1.18% percent, Nasdaq settled up by 1.60% percent..
Treasuries Recap
The U.S. Treasury yield surge that has shaken markets in recent weeks may have further to run, after a stunningly strong U.S. jobs report bolstered the case for more tightening from the Federal Reserve.
Two-year yields, which move more closely in line with monetary policy expectations, jumped by about six basis points after the report while benchmark 10-year yields surged over 10 basis points to nearly 4.9%, although they later pared some of the gains.
Commodities Recap
Gold prices gained on Friday, helped by a technical rebound after a nine-day losing streak, although robust U.S. jobs data raised worries over another U.S. rate hike and kept bullion on track for its second weekly drop.
Spot gold was up 0.6% at $1,831.09 per ounce by 1:41 p.m. EDT (1741 GMT) but on track for its second straight weekly loss, down 0.9% so far.U.S. gold futures settled 0.7% higher at $1,845.20 per ounce.
Oil prices rose on Friday but remained posted their steepest weekly losses since March, after another partial lifting of Russia's fuel export ban compounded demand fears due to macroeconomic headwinds.
On Friday, Brent futures settled up 51 cents at $84.58 per barrel. U.S. West Texas Intermediate crude futures settled up 48 cents at $82.79.