NFP looming, Microsoft losing, USD weaker – Important notes before the big news event today

Important news for the day

• Fri, 01st, 13:30        US        Nonfarm payrolls, unemployment rate

NFP in focus, stocks weaker

The NFP dat almighty not offer a lot of volatility today, as the number is expected on the weaker side. In general an uplift might still cause the Dollar to strength, in particular before the US election. Recent figures from Microsoft have not shown strong positive sentiment in regards to the AI boom. Their growth forecast has been lowered for the Azure cloud business and the charting pattern of the company suggests that the negative sentiment might continue for now. Negative NFP data, however, might cause the Greenback to weaken, as the Fed might continue to lower interest rates again rather soon. This could support stock prices. 

Market talk

Heading into the European session the Dollar continues to lose some momentum against most other currencies. Worth noting that the AUD looks set to rise further for now, which could mark a slight positive change in risk sentiment. Stock markets had fallen as in particular tech- stocks lost momentum, yesterday. The Nasdaq and S&P 500 indices currently trade on top of the 50- moving average based on daily charts. This could cause some upside potential, potentially fuelled by the NFP data today. BTC and ETH looks set to weaken further. For now candlestick patterns show bearish sentiment as no new highs had been created. Oil keeps rising for now but might be impacted by the strongly bearish pattern on long term charts. Without geopolitical tensions rising negative sentiment might continue.

• XAG/USD: We like to buy at 34.90 (buy stop) with SL at 33.20 and open TP.

• EUR/USD: We bought at 1.0820 with SL NOW at 1.0845 and open TP, position slightly reduced in profit.

Tendencies in the markets

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