Posted at 06 November 2021 / Categories Market Roundups
Market Roundup
•US Oct US Average Weekly Hours 34.7,34.8 forecast, 34.8 previous
•US Oct US Unemployment Rate 4.6%,4.7% forecast, 4.8% previous
•US Oct US Average Hourly Earnings (YoY) (YoY) 4.9%,4.9% forecast, 4.6% previous
•US Oct U6 Unemployment Rate 8.3%,8.5% previous
•US Oct Participation Rate 8.3% , 61.6% previous
•Canada Oct Employment Change 31.2K, 50.0K forecast, 157.1K previous
•Canada Oct Participation Rate65.3%, 65.5% previous
• Canada Oct Unemployment Rate 6.7%, 6.8% forecast, 6.9% previous
•US Oct Government Payrolls -73.0K, -123.0K previous
•Canada Oct Full Employment Change-5.2K, 36.4K ,193.6K previous
•Canada Oct Part Time Employment Change -36.5K previous
•US Oct Average Hourly Earnings (MoM) 0.4%,0.4% forecast, 0.6% previous
• US Oct Private Nonfarm Payrolls 604K,400K forecast, 317K previous
• US Oct Nonfarm Payrolls 531K,450K forecast, 194K previous
• US Oct Manufacturing Payrolls 60K , 27K forecast, 26K previous
• Canada Oct Ivey PMI 59.3,70.4 previous
• Canada Oct Ivey PMI n.s.a 61.2,64.5 previous
•U.S. Baker Hughes Total Rig Count 550,544 previous
•U.S. Baker Hughes Oil Rig Count 450,444 previous
•US Sep Consumer Credit 15.90B forecast, 14.38B previous
Looking Ahead Economic Data (GMT)
•No Economic data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro initially declined after data showed stronger U.S. job growth than expected in October, but recovered a bit in late trading as risk appetite improved. Nonfarm payrolls increased by 531,000 jobs last month, above the 450,000 forecast, as the latest surge in COVID-19 infections subsided. August and September data were revised upward to show an additional 235,000 jobs created over those months. The euro was up 0.08% at $1.15635. Immediate resistance can be seen at 1.1573 (Daily high), an upside break can trigger rise towards 1.1595 (38.2%fib).On the downside, immediate support is seen at 1.1531(23.6 % fib), a break below could take the pair towards 1.1502 (Lower BB).
GBP/USD: Sterling held near a one-year low on Friday, extending its losses after the Bank of England surprised the market by leaving interest rates unchanged on Thursday with investors betting that policymakers will keep rates on hold for now. Seven of the nine members of the BoE's Monetary Policy Committee voted to keep the main interest rate at its all-time low of 0.1%, resulting in sterling's biggest daily fall in more than 18 months. Though markets are assigning a more than 50% probability of a rate hike in December, some investors are taking a more measured view. Immediate resistance can be seen at 1.3504 (38.2%fib), an upside break can trigger rise towards 1.3569 (50%fib).On the downside, immediate support is seen at 1.3430(23.6%fib), a break below could take the pair towards 1.3400(Psychological level).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Friday, recovering from a three-week low, as domestic jobs data supported expectations for the Bank of Canada to begin hiking interest rates over the coming months. The Canadian economy added 31,200 jobs in October, the fifth straight month of gains, and the jobless rate slipped to the lowest since the COVID-19 pandemic started at 6.7%.The loonie was trading nearly unchanged at 1.2454 to the greenback, after touching its weakest level since Oct. 12 at 1.2479. For the week, the loonie was down 0.6%, pressured by a pullback in the price of oil, one of Canada's major exports. Immediate resistance can be seen at 1.2448(50%fib), an upside break can trigger rise towards 1.2490 (61.8%fib).On the downside, immediate support is seen at 1.2438 (38.2%fib), a break below could take the pair towards 1.2396 (21 DMA).
USD/JPY: The dollar declined against the Japanese yen on Friday as major central banks’ dovish tone on interest rates this week lifted the demand for yen. The Federal Reserve on Wednesday stuck to its view that inflation would prove “transitory” and would likely not require a fast rise in interest rates. Following that, the Bank of England surprised markets by keeping rates on hold. Nonfarm payrolls increased by 531,000 jobs last month as the surge in COVID-19 infections over the summer subsided, offering more evidence that U.S. economic activity was regaining momentum early in the fourth quarter. Strong resistance can be seen at 114.10 (23.6%fib), an upside break can trigger rise towards 113.51(38.2%fib).On the downside, immediate support is seen at 113.06(50% fib), a break below could take the pair towards 112.66(61.8%fib).
Equities Recap
European equities wrapped up another week of gains on Friday, led by advances in travel stocks after a positive update from U.S. drugmaker Pfizer on its pill for COVID-19 and amid persistent optimism about earnings season.
UK's benchmark FTSE 100 closed up by 0.33 percent, Germany's Dax ended up by 0.15 percent percent, France’s CAC finished the day up by 0.76 percent.
Wall Street's main indexes hit record highs in a broad-based rally on Friday as data showing strong jobs growth in October, coupled with Pfizer's COVID-19 pill update, bolstered sentiment about economic growth.
Dow Jones closed up by 0.56% percent, S&P 500 closed up by 0.37 % percent, Nasdaq settled up by 0.20% percent.
Treasuries Recap
U.S. Treasury yields tumbled and the curve flattened in choppy trading on Friday amid uncertainty as to how the latest employment data, which showed job growth more than expected in October, could affect the timing and size of future Federal Reserve rate hikes.
The benchmark 10-year yield, which fell to its lowest level since Sept. 24 at 1.436% and marked its biggest downward move since July 19, was last 7.4 basis points lower at 1.4496%.
Commodities Recap
Gold rose more than 1% on Friday to a near two-month high as major central banks’ dovish tone on interest rates this week lifted the demand for the safe-haven metal.
Spot gold was up 1.2% at $1,813.36 per ounce by 01:45 p.m. ET (1745 GMT), recovering from a 0.3% drop sparked by data showing U.S. employment increased more than expected in October.
U.S. gold futures for December delivery settled up 1.3% at $1,816.80 per ounce.
Crude prices settled higher on Friday fuelled by renewed supply concerns after OPEC+ producers rebuffed a U.S. call to accelerate output increases even as demand nears pre-pandemic levels.
Brent crude rose $2.20 to settle at $82.74 per barrel, while U.S. West Texas Intermediate crude (WTI) gained $2.46 to $81.27.