NFP report in focus

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 09th, 14:30 CET CA Unemployment Claims.
Fri, 09th, 14:30 CET US Nonfarm payrolls, Average hourly earnings.
Fri, 09th, 16:00 CET US Prelim. consumer sentiment.

NFP in focus

The Nonfarm payrolls report is expected to show that 66.000 jobs have been added to the US economy. While about a year ago number have been in the range of 150.000 jobs and above the momentum seems to fade further currently. Hence the Fed is expected to continue with their path of further rate cuts should numbers disappoint and weaken further. The impact of the longest shutdown in US history might also still show some impact, here. On the other hand, a better reading might help the Dollar. Currency pairs like the EURUSD, GBPUSD and AUDUSD might continue their current slide. That, in turn, might also cause equities to weaken.

Venezuelan Oil

The debate around Venezuela keeps on going further after the US had captured President Maduro. The story around the oil market is stirring up momentum. Some expect that US companies might profit massively from the move of the US government, while in general oil prices might weaken. Venezuela currently sits on the biggest oil reserves globally as reports show. If the US can tap into that this might support the country with the supply of energy despite the global discussion to reduce the use of fossil fuels. Currently, oil prices are moving higher while the market seems to be capped at the USD 59.00 level. The general trend based on monthly charts continues to look bearish, while positive momentum in the short- run might continue to push markets higher.

Tendencies in the markets

Equities positive, USD stronger, crypto sideways, oil positive, Silver positive, Gold positive.

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.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.