Posted at 05 November 2022 / Categories Market Roundups
Market Roundup
•US Oct U6 Unemployment Rate 6.8%,6.7% previous
•US Oct Participation Rate 62.2%, 62.3% previous
•Canada Oct Employment Change 108.3K,10.0K forecast, 21.1K previous
•US Oct Average Hourly Earnings (YoY) (YoY) 4.7%,4.7% forecast, 5.0% previous
•US Oct Unemployment Rate 3.7%,3.6% forecast, 3.5% previous
• US Oct Government Payrolls 28.0K,-25.0K previous
• Canada Oct Unemployment Rate 5.2%,5.3%forecast, 5.2% previous
•US Oct Nonfarm Payrolls 261K, 200K forecast, 263K previous
•US Oct Private Nonfarm Payrolls 233K ,200K forecast, 288K previous
•US Oct Average Hourly Earnings (MoM) 0.4%,0.3% forecast, 0.3% previous
•Canada Oct Full Employment Change 119.3K,5.7K previous
•Canada Oct Part Time Employment Change -11.0K, 15.4K previous
•Canada Oct Participation Rate 64.9%, 64.7% previous
•Canada Oct Ivey PMI n.s.a 50.1,55.9 previous
•Canada Oct Ivey PMI 51.4,59.5 previous
•U.S. Baker Hughes Oil Rig Count 613,610 previous
•U.S. Baker Hughes Total Rig Count 770, 768 previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro strengthened on Friday as dollar fell after October Nonfarm Payrolls Report showed the world's largest economy added more jobs than expected but also showed signs of slowing, with higher unemployment and lower wage inflation . The dollar initially rose immediately after the data but fell as market participants digested the jobs report and realized that the data was not entirely positive and supports views that the Federal Reserve may slow the pace of future rate hikes. The euro was last up 2.18% at $0.9957. Immediate resistance can be seen at 0.9964(23.6%fib), an upside break can trigger rise towards 1.0038(Higher BB).On the downside, immediate support is seen at 0.9881(38.2%fib), a break below could take the pair towards 0.9853 (5DMA).
GBP/USD: Sterling strengthened on Friday after U.S. nonfarm payrolls data showed mixed picture. The number of nonfarm payrolls rose by 261,000 last month, data showed on Friday. Data for September was revised upwards to show 315,000 new jobs instead of the 263,000 previously reported. Economists polled had forecast 200,000 jobs, with estimates ranging from 120,000 to 300,000 . However, the unemployment rate rose to 3.7% from September's 3.5%. Average hourly earnings increased 0.4% after rising 0.3% in September, but the rise in wages slowed to 4.7% year-on-year in October after advancing 5.0% in September. Immediate resistance can be seen at 1.1377(5DMA), an upside break can trigger rise towards 1.1453(23.6%fib).On the downside, immediate support is seen at 1.1293(38.2%fib), a break below could take the pair towards 1.1139(50%fib).
USD/CAD: The Canadian dollar appreciated against its US counterpart on Friday by the most in 12 years, as oil prices soared and national employment data fueled bets of another larger-than-expected Bank of Canada interest rate hike next month. The Canadian economy added 108,300 jobs in October, easily beating forecasts for 10,000 new jobs, with the blowout gain entirely in full-time work.Money markets see a 65% chance that the BoC would raise its benchmark interest rate by half a percentage point at its next policy announcement on Dec. 7, up from about 50% before the data.Immediate resistance can be seen at 1.3596(38.2%fib), an upside break can trigger rise towards 1.3637 (5DMA).On the downside, immediate support is seen at 1.3472(50%fib), a break below could take the pair towards 1.3436 (Lower BB).
USD/JPY: The dollar dipped against the yen on Friday after stronger-than-expected payrolls data but data also hinted at some lull in the tight US jobs market, raising hopes that the Federal Reserve might ease monetary tightening .Data Showed US economy added 261,000 jobs in October. That beat the estimate of 200,000, according to poll of economists, but also showed unemployment rising from 3.5% to 3.7% in September, while wage inflation dropped to 4.7% from 5% in the prior month The dollar was last down 1.19% at 146.65 yen . Strong resistance can be seen at 147.90 (5DMA), an upside break can trigger rise towards 148.62 (23.6%fib).On the downside, immediate support is seen at 146.08 (38.2%fib), a break below could take the pair towards 146.60(Daily low).
Equities Recap
European stocks rallied on Friday after U.S. jobs data backed bets the Federal Reserve would deliver smaller rate hikes, with hopes of easing COVID-19 curbs in China boosting mining and luxury stocks.
UK's benchmark FTSE 100 closed up by 2.04 percent, Germany's Dax ended down by 2.51 percent, France’s CAC finished the day up by 2.77 percent.
U.S. stocks closed higher on Friday in volatile trade to snap a four-session losing streak as investors wrestled with a mixed jobs report and comments from Federal Reserve officials on the pace of interest rate hikes.
Dow Jones closed up by 1.26 percent, S&P 500 ended up by 1.36 percent, Nasdaq finished the up by 1.28 percent.
Treasuries Recap
Treasury yields were mixed on Friday after government data showed U.S. payrolls increasing more than expected in October but a slower pace of job growth, and moderating wage increases, gave the market hope the Federal Reserve could shift its interest rate hikes to a smaller amount in December.
The yield on 10-year notes rose 0.7 basis points to 4.131%, while the two-year yield, which typically moves in step with interest rate expectations, was down 1.3 basis points at 4.688%.
Commodities Recap
Gold prices surged 3% on Friday as the dollar fell after data showing an uptick in the U.S. unemployment rate in October raised optimism the Federal Reserve would be less aggressive on rate hikes going forward.
Spot gold rose nearly 3% to $1,677.67 per ounce by 2:34 p.m. ET (1834 GMT). Bullion is up nearly 2.2% for the week, the biggest weekly percentage gain since end-July.U.S. gold futures settled up 2.8% to $1,676.6.
Oil prices settled up by more than 5% on Friday amid uncertainty around future interest rate hikes by the U.S. Federal Reserve, while a looming EU ban on Russian oil and the possibility of China easing some COVID restrictions supported markets.
Brent crude futures settled up $3.99 to $98.57 per barrel, a weekly gain of 2.9%.U.S. West Texas Intermediate (WTI) crude futures were up $2.96, or 5%, at $92.61, a 4.7% weekly gain