Naeem Aslam
Zaye Capital Markets
Today is the most critical day for markets and traders. Today, we are going to get another update about the health of the US economy when the US NFP data will be released. There is no doubt that the stage is set for a strong US NFP reading. This is because we had a strong US ADP, ISAM manufacturing, and ISM Non-Manufacturing reading, and weekly Jobless Claims data also shows enormous strength.
We also need to keep in mind that there is a higher degree of disappointment because market players are hoping for strong reading, and if the report shows weak numbers, we are likely to see gigantic moves in the markets. This means that the Dow Jones, the S&P 500, and the Nasdaq, which are set to post their best weekly gains since November, will see a massive sell-off. It is also likely that we may see an enormous spike in the gold price, which has been under selling pressure more recently.
In terms of technical analysis, gold prices are trading below the 50, 100, and 200-day simple moving averages, and this means that bulls have lost control of the price. Having said this, for the past few days, we have experienced an intensive sell-off, which has pushed the RSI on the daily time frame towards its oversold region. This means that retracement is highly, and this could take place.
The information is purely for education purposes only and cannot be perceived as an advise.
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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.