Posted at 03 September 2022 / Categories Market Roundups
Market Roundup:
•U.S. job growth solid in August, but labor market loosening
•Gazprom: Nord Stream 1 gas to stay shut until turbine fault fixed, no timeline given
• U.S. oil, gas rig count falls for 4th week in 5 -Baker Hughes
• Iran says it sends 'constructive' response on nuclear deal; U.S. disagrees
•Canada Labor Productivity (QoQ) (Q2) 0.2%, -0.5% previous
•US Aug U6 Unemployment Rate 7.0%, 6.7% previous
•US Aug Average Hourly Earnings (YoY) (YoY) 5.2%, 5.3% forecast, 5.2% previous
•US Aug Unemployment Rate 3.7%,3.5% forecast, 3.5% previous
•US Aug Nonfarm Payrolls 315K, 300K forecast,528K previous
•US Aug Private Nonfarm Payrolls 308K, 300K forecast, 471K previous
•US Aug Average Hourly Earnings (MoM) 0.3%, 0.4% forecast,0.5% previous
•US Aug Manufacturing Payrolls 22K, 20K forecast, 30K previous
•US Aug Average Weekly Hours 34.5,34.6 forecast, 34.6 previous
•US Jul Factory orders ex transportation (MoM) -1.1%, 1.4% previous
•US Durables Excluding Defense (MoM) 1.1%,1.2% previous
•US Jul Factory Orders (MoM) -1.0%,0.2% forecast, 2.0% previous
•U.S. Baker Hughes Oil Rig Count 596,605 previous
•U.S. Baker Hughes Total Rig Count 760, 765 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro initially gained against dollar on Friday but gave up ground as investors digested mixed jobs data, while renewed concerns over the European gas crisis weighed on euro. Data showed on Friday that U.S. employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% suggested there could be less pressure on the Federal Reserve to deliver a third 75-basis-point interest rate hike this month. News that Russia has scrapped a Saturday deadline to resume flows via a major gas supply route to Germany, deepening Europe's difficulties in securing winter fuel, further soured sentiment in the United States ahead of the long Labor Day weekend. Immediate resistance can be seen at 0.9992(5DMA), an upside break can trigger rise towards 1.0024(Daily high).On the downside, immediate support is seen at 0.9922 (23.6%fib), a break below could take the pair towards 0.9831(Lower BB).
GBP/USD: The pound declined on Friday as concerns about the UK’s deteriorating economic outlook, the policy direction under a new prime minister and demand for dollars all hurt the British currency. Sterling is on course for a weekly fall of nearly 1.5% versus the dollar, and next week could be volatile too as Britain’s new prime minister will be announced on Monday, when the ruling Conservative Party’s leadership contest concludes. Sterling dipped 0.24% versus the dollar to $1.1516, on track to end the week down around 1.9%. Immediate resistance can be seen at 1.1608(5DMA), an upside break can trigger rise towards 1.1689(9DMA).On the downside, immediate support is seen at 1.1496(23.6%fib),a break below could take the pair towards 1.1465(Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as crude prices recovered, while dollar retreated following mixed US employment data. The U.S. economy added 315,000 jobs in August, data showed, topping the consensus forecast of 300,000 jobs by economists polled, and marking the 20th straight month of job growth. The dollar index, which tracks the currency against six counterparts, zig-zagged following the report, in thin trading ahead of the long North American Labor Day weekend. The loonie was last trading 0.23% higher at 1.3124 to the greenback. Immediate resistance can be seen at 1.3163(23.6%fib), an upside break can trigger rise towards 1.3189 (Higher BB).On the downside, immediate support is seen at 1.3084 (38.2% fib), a break below could take the pair towards 1.3043(9 DMA).
USD/JPY: The dollar retreated from a 24-year high against yen on Friday after data that showed the U.S. labor market is starting to loosen failed to allay investor fears about aggressive interest rate hikes from the Federal Reserve. Non-farm payrolls increased by 315,000 jobs last month, down from a surging 526,000 in July, the Labor Department said. The unemployment rate increased to 3.7% from a pre-pandemic low of 3.5% in July.Economists had forecast payrolls increasing 300,000. Estimates ranged from as low as 75,000 to as high as 450,000. Softer data is seen as alleviating the need for the Fed to raise rates to aggressively curb inflation, moves which the market worries could bring on a recession. The dollar, a beneficiary of rising interest rates, hit a fresh 24-year high against the yen at 140.80. By midday in New York, the yen had pulled back to 140.18. Strong resistance can be seen at 140.80(38.2%fib), an upside break can trigger rise towards 150.00(Psychological level).On the downside, immediate support is seen at 139.40(5DMA), a break below could take the pair towards 138.90(38.2%fib).
Equities Recap
European stocks closed on a strong note, snapping a long losing streak, after data showing an uptick in U.S. unemployment rate helped ease concerns about aggressive monetary tightening by the Federal Reserve.
UK's benchmark FTSE 100 closed up by 1.86 percent, Germany's Dax ended up by by 3.33 percent, France’s CAC finished the day up by 2.21 percent.
U.S stocks closed out the trading week on a down note on Friday, as early gains from a jobs report that showed a labor market that may be starting to loosen gave way to worries about the European gas crisis.
Dow Jones closed down by 1.07% percent, S&P 500 closed down by 1.07% percent, Nasdaq settled up by 1.31% percent.
Treasuries Recap
Yields of short-term U.S. Treasuries fell from multi-year highs Friday after a closely watched employment report showed unemployment rising and job growth slowing in August.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 4 basis points at 3.482% after hitting 15-year highs the day before.
The yield on 10-year Treasury notes was up 1.7 basis points to 3.282%, one day after hitting two-month intraday highs, while the yield on the 30-year Treasury bond was up 3 basis points to 3.404%.
Commodities Recap
Gold bounced over 1% on Friday as the dollar retreated after U.S. jobs data came mostly in line with expectations, but it was still bound for a third consecutive weekly fall pressured by an elevated interest rate environment.
Spot gold rose 0.8% to $1,710.29 per ounce by 1:45 p.m. ET (1745 GMT). Prices were still down 1.5% for the week.U.S. gold futures settled up 0.8% at $1,722.6.
Oil prices rose on Friday on expectations that OPEC+ will discuss output cuts at a meeting on Sept. 5, though concern over China's COVID-19 curbs and weakness in the global economy loomed over the market.
Brent crude futures rose 66 cents to settle at $93.02 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 26 cents to settle at $86.87 a barrel.