Posted at 03 July 2021 / Categories Market Roundups
Market Roundup
•US June Unemployment Rate 5.9%,5.7% forecast, 5.8% previous
•US June Average Hourly Earnings (YoY) (YoY) 3.6%, 3.7%,2.0% previous
•US June U6 Unemployment Rate 9.8%,10.2% previous
•US June Participation Rate 61.6%,61.6% previous
•US June Trade Balance -71.20B,-71.40B, -68.90B previous
•Canada May Building Permits (MoM) -14.8%,-0.3%forecast,-0.5% previous
•US June Average Weekly Hours 34.7, 34.9 forecast, 34.9 previous
•Canada May Imports 50.92,B49.61B previous
•US June Average Hourly Earnings (MoM) 0.3%,0.4% forecast ,0.5%previous
•US June Manufacturing Payrolls 15K,28K forecast, 23K previous
•US June Private Nonfarm Payrolls 662K, 600K forecast, 492K previous
•US June Nonfarm Payrolls 850K, 700K forecast, 559K previous
•Canada May Exports 49.53B,50.21B previous
•Canada May Trade Balance 49.53B ,0.37B forecast, 0.59B previous
•Canada June Manufacturing PMI 56.5 ,57.0 previous
•US May Factory Orders (MoM) 0.7%,1.6% forecast, -0.6% previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•no significant events
EUR/USD: The euro strengthened on Friday as U.S. dollar dropped after the U.S. nonfarm payrolls report for June showed a strong jobs gain but some weak details.Data showed U.S. job growth accelerated in June as nonfarm payrolls increased by 850,000 jobs after rising by 583,000 in May, although the unemployment rate rose to 5.9% from 5.8% the previous month. The euro was up 0.1% on the day at $1.1865.Immediate resistance can be seen at 1.1902 (11DMA), an upside break can trigger rise towards 1.1923 (38.2%fib).On the downside, immediate support is seen at 1.1835(23.6%fib), a break below could take the pair towards 1.1743(Lower BB).
GBP/USD: Britain’s pound steadied against the dollar on Friday, recovering from two-month lows after a print of U.S. jobs data pushed the dollar lower.Earlier on Friday, sterling hit fresh two-month lows against the dollar, pressured by dovish comments from the Bank of England’s governor.Bailey’s comments knocked the pound to its lowest since April 16, and the currency hit a fresh low of $1.3745 in morning deals in London.But after the dollar was weighed down by some weaker details in an otherwise strong overall U.S. jobs report, sterling recovered some ground to trade 0.15% higher at $1.3782. Immediate resistance can be seen at 1.3873 (11DMA), an upside break can trigger rise towards 1.3895(50%fib).On the downside, immediate support is seen at 1.3821 (38.2%fib), a break below could take the pair towards 1.3734 (23.6%fib).
USD/CAD: The Canadian dollar rallied against its U.S. counterpart on Friday, as the greenback gave back some recent gains and investors looked for Canada's jobs report next week to support further reduction of stimulus by the Bank of Canada.The loonie was trading 0.9% higher at 1.2320 to the greenback, its biggest advance since May 6.Earlier, the currency touched its weakest level since June 21 at 1.2449. For the week, it was down 0.2%.Immediate resistance can be seen at 1.2367 (38.2%fib), an upside break can trigger rise towards 1.2441 (23.6%fib).On the downside, immediate support is seen at 1.2309 (50%fib), a break below could take the pair towards 1.2254 (61.8%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday as greenback was weighed down by a mixed U.S. nonfarm payrolls report for June, that showed a strong headline number but with some weak components. Data showed that U.S. nonfarm payrolls did beat expectations, increasing by 850,000 jobs last month after rising 583,000 in May. But the unemployment rate rose to 5.9% from 5.8% in May, while the closely watched average hourly earnings, a gauge of wage inflation, rose 0.3% last month, lower than the consensus forecast for a 0.4% increase. Strong resistance can be seen at 111.17(38.2%fib), an upside break can trigger rise towards 111.76 (Higher BB).On the downside, immediate support is seen at 110.78(50%fib), a break below could take the pair towards 110.22 (61.8%fib).
Equities Recap
European shares ended slightly higher on Friday on a boost from chipmakers, although gains were capped by weak bank stocks and growing concerns over the Delta variant of the coronavirus.
UK's benchmark FTSE 100 closed down by 0.03 percent, Germany's Dax ended up by 0.30 percent, France’s CAC finished the day up by 0.02 percent.
Wall Street scaled new highs on Friday, with the S&P closing up for a seventh straight day, after jobs data for June showed robust hiring yet persistent weakness in the labor market that will keep the Federal Reserve from raising interest rates any time soon.
Dow Jones closed up by 0.44%percent, S&P 500 closed up by 0.75% percent, Nasdaq settled up by 0.81 % percent.
Treasuries Recap
U.S. Treasury yields were lower on Friday after a strong payroll report left uncertainty about how the Federal Reserve might respond.
The benchmark 10-year yield was down 3.9 basis points at 1.4407% in midday trading. That was close to its level before the morning release of new Labor Department data showed U.S. job growth accelerated in June.
Commodities Recap
Gold rose on Friday, climbing further from a two-month trough hit earlier in the week, as the dollar weakened and investors weighed prospects for U.S. Federal Reserve tightening after a strong U.S. jobs report that nevertheless showed a slight uptick in the unemployment rate.
Spot gold rose 0.4% to $1,784.21 per ounce by 1:42 pm EDT (1742 GMT), after jumping to $1,794.86, its highest level since June 18. U.S. gold futures settled up 0.4% at $1,783.30.
Oil prices steadied on Friday after OPEC+ ministers resumed talks on raising oil output the day after the United Arab Emirates blocked a deal, which could delay plans to pump more oil through the end of the year.
U.S. West Texas Intermediate (WTI) crude futures fell 7 cents to settle at $75.16 a barrel, having jumped 2.4% on Thursday to close at their highest since October 2018.