Posted at 07 August 2021 / Categories Market Roundups
Market Roundup
•U.S. nonfarm payrolls rise 943,000 in July
•Biggest weekly drop in 4 months for Brent, in 9 months for WTI
•U.S. oil rigs rise two to 387 this week - Baker Hughes
•Canada July Employment Change 94.0K,177.5K forecast, 230.7K previous
•US Jul U6 Unemployment Rate 9.2%,9.8% previous
•US Jul Participation Rate 65.2%, 61.7%,61.6% previous
•US Jul Average Hourly Earnings (YoY) (YoY) 4.0%,3.8% forecast, 3.6% previous
•US Jul Average Weekly Hours 34.8,34.7 forecast, 34.7 previous
•US Jul Unemployment Rate 5.4%, 5.7% forecast, 5.9% previous
•Canada Jul Participation Rate 65.2%, 65.2% previous
•Canada Jul Unemployment Rate 7.5%,7.4% forecast, 7.8% previous
•US Jul Nonfarm Payrolls 943K, 870K, 850K previous
•US Jul Government Payrolls 188.0K previous
•US Jul Manufacturing Payrolls 27K, 25K forecast, 15K previous
•US Jul Private Nonfarm Payrolls 703K, 700K forecast, 662K previous
•US Jul Average Hourly Earnings (MoM) 4.0%, 0.3% forecast, 0.3% previous
•US Canada Part Time Employment Change 11.0K, 263.9K previous
•Canada Jul Full Employment Change 83.0K, -33.2K previous
•Canada Jul Ivey PMI n.s.a 59.8,67.7 previous
•Canada Jul Ivey PMI 56.4 ,71.9 previous
•US Wholesale Trade Sales (MoM) 2.0%,0.8% forecast, 0.8% previous
•U.S. Baker Hughes Oil Rig Count 387,387 previous
•U.S. Baker Hughes Total Rig Count 491,491 previous
Looking Ahead –Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Friday as dollar gained following a stronger-than-expected jobs report. Nonfarm payrolls increased by 943,000 jobs last month, a Labor Department report showed. Economists polled by Reuters had forecast payrolls would increase by 870,000 jobs.The Labor Department’s closely watched employment report also showed strong wage gains, as employers competed for scarce workers, and a drop in the unemployment rate to a 16-month low.. The euro fell 0.6% to $1.1757, down 0.6%. Immediate resistance can be seen at 1.1789(50%fib), an upside break can trigger rise towards 1.1827(61.8%fib).On the downside, immediate support is seen at 1.1756(38.2%fib), a break below could take the pair towards 1.1707 (23.6%fib).
GBP/USD: Sterling declined against dollar on Friday as strong jobs report boosted greenback across the board. Labor Department statistics showed U.S. job growth rose solidly in July amid demand for workers in the labor-intensive services industry. Nonfarm payrolls increased by 943,000 jobs last month after rising 938,000 in June, the department said in its closely watched employment report. The British pound fell nearly 0.4% to $1.3872.Immediate resistance can be seen at 1.3894 (5DMA),an upside break can trigger rise towards 1.3935 (Daily high).On the downside, immediate support is seen at 1.3858 (38.2%fib), a break below could take the pair towards 1.3825 (30DMA).
USD/CAD: The loonie weakened against its US counterpart on Friday as oil prices fell and investors were more impressed with employment data in the US than in Canada. Canada created 94,000 jobs in July, much fewer than expected, although most of the gains came from full-time employment and the unemployment rate continued to decline as the economy reopened. The dollar rebounded against a basket of major currencies as employers hired the most workers in nearly a year in July, giving the US economy a big boost. Immediate resistance can be seen at 1.2598 (38.2%fib), an upside break can trigger rise towards 1.2681 (23.6%fib).On the downside, immediate support is seen at 1.2538(50%fib), a break below could take the pair towards 1.2503 (5 DMA).
USD/JPY: The dollar rose against the Japanese yen on Friday after a U.S. jobs report showed jobs grew more than expected in July. The report on U.S. nonfarm payrolls showed jobs increased by 943,000 in July compared with the 870,000 forecast by economists. The dollar index against major currencies was up 0.6% at 92.80.Against the safe haven Japanese yen, the dollar had its biggest daily gains since June. Strong resistance can be seen at 110.27(38.2%fib), an upside break can trigger rise towards 110.72 (50%fib).On the downside, immediate support is seen at 109.90 (21DMA), a break below could take the pair towards 109.66(23.6%fib).
Equities Recap
European stocks inched up to a record close on Friday, marking their best week since mid-March on a run of strong quarterly earnings and as hopes of a broader rebound drove buying in economy-linked sectors.
UK's benchmark FTSE 100 closed up by 0.04 percent, Germany's Dax ended up by 0.11 percent, France’s CAC finished the day up by 0.53 percent.
The Dow and the S&P 500 indexes closed at record highs on Friday following a stronger-than-expected jobs report, while investors shrugged off concerns over the Delta variant impacting a nascent economic recovery.
Dow Jones closed up by 0.41% percent, S&P 500 closed up by 0.17% percent, Nasdaq settled up by 0.40% percent.
Treasuries Recap
U.S. Treasury yields rose Friday after a strong jobs report that was in line with goals the Federal Reserve has set to start unwinding stimulus.
The yield on the benchmark 10-year note was up 8.7 basis points at 1.3036%, its highest of the day, as equity indexes closed at record highs.
Commodities Recap
Gold fell to its lowest level in more than a month on Friday after a strong report from U.jobs reinforced expectations that the Federal Reserve may begin scaling back economic support earlier than expected.
Spot gold fell 2.2% to $1,763.96 per ounce by 1:50 p.m., after touching its lowest since June 30 at $1,757.70. U.S. gold futures settled 2.5% down at $1,763.10.
Oil prices fell about 1% on Friday amid fears that travel restrictions to slow the spread of the Delta variant of COVID19 will undo the global recovery in energy demand.
Brent crude oil futures settled down 59 cents, or 0.8%,at $70.70, while U.S. West Texas Intermediate (WTI) crude futures fell 81, or 1.2%, to settle at $68.28 a barrel.