EU PMI improve

Markets flat

Nikkei -0.75%% Dax 0.66%

UST 10Y 0.683

Oil $40/bbl

Gold $1787/oz

BTCUSD $9192

 

Asia and the EU

EU PMI 45.2 vs 44.5.

 

North America 

USD ADP 8;15

USD ISM Manufacturing 10:00

 

Its been a very quiet flat session in European dealing with equities slightly lower and currencies mixed as markets basically tread water ahead of US employment data later today.

On the eco front in Europe, the final PMI prints came in just a ta better at 45.2 versus 44.6 eyed, and in Germany, the unemployment change also posted better results at 62K versus 120K forecast. The data confirms the slow but clear return back to work and economic activity as the threat of virus recedes.

Still despite the rebound economic activity remains in contraction and it is likely to take months for activity in the EU to resume anything resembling pre-COVID levels. The EURUSD saw little reaction to the news but held at the 1.12000 level.

Equities were lackluster throughout staying slightly below yesterday’s close and weakened into the US open. Yesterday end of day ramp was likely driven by end of quarter window painting but now the markets must once again focus on growth in the US which looks problematic at best. The recent spike in coronavirus cases is already forcing some states to rethink their opening policies restricting restaurants, bars, and movie theaters from re-opening.

All of this start and stop policy change is likely to take its toll on business activity and although the market anticipates that today’s ADP labor data numbers will show a strong rebound to 2.8M jobs gained the market may look past the number if it anticipates that many of those jobs will be vulnerable to layoff the month following. If the number misses expectations it will provide a perfect excuse for even greater selling as stocks have not yet seen any correction after their massive rally over the past six weeks and it is long overdue.

Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

AUD/USD: Bears trying to sneak in below 0.6950 but bulls give a healthy fight

AUD/USD kick-starts the week with a gap-down, seesaws around 0.6930 afterward. A surge in the virus cases, hospitalizations in the US, escalating Sino-American tension question market sentiment. 

AUD/USD News

USD/JPY slightly offered in the open, eyes on coronavirus headlines

The yen has picked up a start of the week bid across the board, moving up against the US dollar by 5 pips to a low of 107.42 from high of 107.47, falling further away from the end of week 107.50s. 

USD/JPY News

What you need to know for the open: Summer lull or a COVID-19 tidal wave of panic-vol?

AUD/USD is the currency pair in focus for this week. Coronavirus developments vs economic recovery are on every trader's playbook. Key data for the week will kick in with US jobs updates, ISM Manufacturing and the RBA meeting. 

Read more

Gold: Buyers can ignore soft weekly open below $1,775

Gold prices offered a downside gap near $1,774 to kick-start with the week on a back foot. Pandemic fears, geopolitical tensions keep safe-haven buyers strong amid global policymakers’ fight against economic suppression.

Gold News

S&P 500: Futures struggle to refresh two-week top

S&P 500 Futures prints mild loss of 0.10% while declining to 3,126 during the initial hour of Tokyo session on Friday. In doing so, the risk barometer fails to extend the previous four-day winning streak.

Read more

Forex Majors

Cryptocurrencies

Signatures