Disastrous NFP report to follow? What this means for markets
Important news for the day
- Fri, 05th, 14:30 CET US Nonfarm Payrolls
- Fri, 05th, 14:30 CET CA Unemployment rate
Stock markets
US indices might continue their positive moves. The slight weakness of the Dollar might cause the markets to rise. The S&P 500 has printed a new all- time- high and the upside seems hence to be open. The German DAX on the other hand might remain weaker and could fall further if markets start to correct. A weaker NFP report might hence help in particular the S&P to rise further. A weaker NFP reading should hence cause a positive impact.
Market talk
Traders will wait for the release of the NFP report today. So far this week markets had mostly remained in a sideways trading pattern. Yet due to the weaker economic data the momentum in the short run might continue for the equity sector. Tith lower JOLTS job openings and the miss in the ADP report also the NFP data is expected to come in lower. This will be enough reason for Jerome Powell to ut rates in the near future. Furthermore, also cryptos start to gear up some momentum with Bitcoin leading currently. This might be the guiding force for other tokens to also follow. Gold and Silver prices currently look set for a potential correction. In particular if the Dollar will gear up steam a correction seems to be on the cards.
Tendencies in the markets
- Equities positive, USD weaker, BTC stronger, ETH positive, oil weaker, Silver sideways, Gold sideways, JPY weaker.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
