|

NFP data to guide markets – Will the Dollar continue to weaken?

Important news for the day

  • Fri, 06th, 14:30 CET            CA        Unemployment change.
  • Fri, 06th, 14:30 CET            US        Non- Farm payrolls report.

NFP data

Today market participants will wait for the release of the NFP employment data. The US- Dollar is heading slightly lower ahead of the news event today but markets remain calm. In general also stocks seem to weaken again as they have lost steam so far this week. The ADP employment change was lower than expected, which could be of a preview for today whereas those numbers are not quite correlated. A weaker NFP figure might send the Dollar further to lower levels today.

Market talk

Precious metals have geared up steam and might break higher. Gold prices are nearing their all- time- highs and could cause a breakout anytime soon. Due to the negative economic sentiment also oil prices continue to run lower. Worth noting that also production increases by the OPEC might cause the trend to intensify. Crypto markets also seem to follow the current negative market sentiment, whereas the Dollar weakness does not act to support them.

Tendencies in the markets

  • Equities weak, USD weaker, cryptos weak, oil weak, metals positive, JPY stronger.

Author

More from Frank Walbaum
Share:

Editor's Picks

AUD/USD hits nine-week lows below 0.7000 on RBA Bullock's remarks

AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference. Earlier on, the RBA raised the cash rate to 4.60%, as widely expected, leaving the door open to further rate hikes if needed.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.

Gold seems vulnerable near eight-week low amid Fed hike bets

Gold struggles to capitalize on a modest Asian session uptick, trading near its lowest level since August 4, around the $4,100 neighborhood, touched the previous day. Moreover, the bearish fundamental backdrop suggests that the path of least resistance for the precious metal remains to the downside.

Ripple and Stellar face resistance amid weak signals

Ripple and Stellar remain under pressure as bulls struggle to sustain recent gains. XRP extends its decline below $1.480 after three consecutive losing days, while XLM faces rejection near the $0.234 resistance zone. In addition, mixed derivatives outlook and weakening on-chain metrics suggest that bullish momentum remains fragile, leaving both XRP and XLM vulnerable to further losses.

India Gold market cautiously optimistic with approach of festive and wedding seasons
The Indian gold market is cautiously optimistic as we approach the festive gold-buying season. Higher prices continue to weigh on gold jewelry demand even as they support investment purchases. Meanwhile, wedding buying appears “resilient,” according to the World Gold Council.
Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.