Market Roundup
- U.S. Oct nonfarm payrolls rise by 271,000 v 180k forecast, AHE +0.4 v 0.2 forecast, 0% previous.
- Canada adds 44.400 jobs in Oct; unemployment falls to 7.0 percent.
- Fed’s Evans says conditions could be ripe for hike, Fed needs to communicate hike path will be gradual.
- Fed’s Bullard: economy effectively at full employment, Issues that deterred Fed from Sept rate hike largely disappeared, U.S. within a year of hitting Fed’s inflation target.
- China central bank to continue interest rate, exchange rate reforms, previous policies gradually showing their effect.
- U.S. rates futures fall after Oct jobs data, CME Fedwatch sees 70% chance of Dec hike.
- Latin America/EM currencies sell off after robust US jobs report.
- Wall St dips as jobs data boosts odds of Dec rate hike; oil slumps.
- Gold at 3-mth low after U.S. data, eyes biggest weekly drop since 2013.Looking Ahead – Economic Data (GMT)
- –:– China FDI (YTD)* Oct 9%-previous
- SUN 02:00 China Exports YY* Oct forecast -3%, -3.7%- previous
- SUN 02:00 China Imports YY* Oct forecast -16%, -20.4%- previous
- SUN 02:00 China Trade Balance USD* Oct forecast 64.75b, 60.34b-previous
- 23:50 Japan Foreign Reserves Oct 1248.90b- previous
- 00:30 Australia ANZ Newspaper Job Ads Oct -2.7%- previous
- 00:30 Australia ANZ Internet Job Ads Oct 4%- previous
- 01:30 Japan Overtime Pay Sep 1.5%- previous
Looking Ahead – Events, Other Releases (GMT)
- No Significant Events
Currency SummariesEUR/USD is likely to find support at 1.0700 levels and currently trading at 1.0738 levels. The pair has made session high at 1.0752 and hit lows at 1.0705 levels. The dollar hits close to 7-month against euro on Friday, after the release of data which showed that U.S. economy created far more jobs than expected in October. A stronger than expected job report for October pointed to a stronger labour market and boosted prospects the Federal Reserve will increase interest rates next month, sending shares on Wall street lower after the data release this week. Since the Fed last week opened the door to a rate increase in December, investors have been looking to economic reports for clues to whether the central bank will take action. Data on Friday showed U.S. non-farm payrolls growth in October was the best since December 2014, while the unemployment rate fell to 5 percent, the lowest since April 2008. The euro fell to $1.708 its lowest since April, and last traded down 1.31 percent at $1.0738. To the upside, immediate resistance can be seen at 1.0753. To the downside, immediate support level is located at 1.0713 levels.GBP/USD is supported in the range of 1.5000 and currently trading at 1.5047 levels. It reached session high at 1.5086 and dropped to session low at 1.5025 levels. The Sterling slipped against US dollar for second straight session on Friday. Sterling lost ground against the dollar after U.S. data showed job growth surged in October, making it more likely the Federal Reserve will increase the interest rates in December. The spike in employment bolsters the chance for a U.S. rate hike in December that could add to the dollar’s strength, making commodities denominated in the greenback less affordable to holders of other currencies. The data sent the dollar higher across the board. The greenback hit highs of 3-1/2-months versus the GBP, seven months against the Swiss franc and 6-1/2 months against the euro. The dollar hit 6-1/2-month highs against a basket of currencies, after data showed the U.S. jobs market grew in October by its most in a month since December the upside, immediate resistance can be seen at 1.5085. To the downside, immediate support level is located at 1.5025 levels.USD/JPY is supported around 122.50 levels and currently trading at 123.14 levels. It peaked to hit session high at 123.14 and made session lows at 122.77 levels. Dollar rose against Japanese yen on Friday after US jobs data printed better than expected figures. Nonfarm payrolls increased 271,000 in October, the largest gain since last December, while average hourly earnings rose a respectable 9 cents, the U.S. Labor Department said. The unemployment rate fell to 5.0 percent, the lowest since April 2008 and in a range many Fed officials consider to be full employment. Federal Reserve Chair Janet Yellen said the United States was ready for higher interest rates if upcoming economic data supported them, while in Eurozone the ECB made a new proposal to ramp up stimulus if required. The dollar rose to 123.26 yen, its highest since Aug. 21, and last traded at 123.21, up 1.21 percent. To the upside, immediate resistance can be seen at 123.58. To the downside, immediate support level is located at 123.16 levels. USD/CAD is supported at 1.3250 levels and is trading at 1.3299 levels. It has made session high at 1.3317 and lows at 1.3283 levels. The Canadian dollar hit its weakest level against the U.S. dollar since Oct. 1 on Friday after stronger than expected U.S. jobs data eclipsed an election-enhanced jump in Canadian jobs, with soft oil prices and the Keystone pipeline rejection also weighing on the currency. Canada created the more jobs in five months in October, decreasing the unemployment rate down as employment in the public administration sector jumped on hiring related to last month’s election. The economy added 44,400 jobs last month, data from Statistics Canada showed on Friday, handily topping forecasts for a gain of 10,000. The unemployment rate, which had edged higher recently, eased to 7.0 percent from 7.1 percent.Canada was in a mild recession in the first half of the year, but economists expect the economy has already has made recovery and point to the resiliency of the labor market despite layoffs in the energy sector.The Bank of Canada has cut interest rates twice this year to offset the shock of cheaper oil, but the surprisingly upbeat jobs figures reinforced expectations the central bank will hold its main policy rate at 0.5 percent when it next meets in December. To the upside, immediate resistance can be seen at 1.3315. To the downside, immediate support level is located at 1.3280 levels.Equities RecapEuropean stock markets ended higher on Friday after stronger than expected U.S. jobs data boosted the dollar, lifting export-oriented stocks like autos, although Cartier brand-owner Richemont plunged after warning of tough times ahead.UK’s benchmark FTSE 100 closed down by 0.19 percent, the pan-European FTSEurofirst 300 ended the day up by 0.23 percent, Germany’s Dax ended up by 0.9 percent, France’s CAC finished the day up by 0.4 percent.U.S. stocks ended little changed on Friday, with a rise in financials countered by a slide in utilities and other sectors, as Wall Street took the strong U.S. jobs report as evidence the Federal Reserve will soon raise interest rates.Dow Jones closed up by 0.27 percent, S&P 500 ended down by 0.04 percent, Nasdaq finished the day up by 0.36 percent.Treasuries RecapU.S. Treasury yields soared on Friday, with two-year yields hitting their highest levels in five and a half years, after stronger-than-expected U.S. nonfarm payrolls data for October bolstered expectations for a December Federal Reserve rate hike.U.S. 10-year Treasury notes were last down 22/32 in price, with yields rising to 2.327 percent from 2.245 percent late Thursday. U.S. two-year notes fell 3/32, with yields increasing to 0.890 percent from 0.842 percent.Commodities RecapOil prices fell as much as 2 percent on Friday, posting their third weekly decline in four, on pressure from a rallying dollar and higher interest rate expectations after strong U.S. jobs growth in October.Brent, the global benchmark for oil, settled down 56 cents, or 1.2 percent, at $47.42 a barrel. It fell 4.2 percent on the week.U.S. crude finished down 91 cents, or 2 percent, at $44.29. It tumbled 5 percent on the week.Gold fell to a three-month low on Friday and was set to post its biggest weekly drop in more than two years after U.S. data showed job growth surged in October, making it likely the Federal Reserve will hike interest rates in December.The U.S. futures contract for December delivery settled down 1.5 percent at $1,087.70 an ounce.Spot gold, stronger initially, fell as much as 1.7 percent to $1,084.90 an ounce, its lowest since Aug. 7. It was down 1.3 percent at $1,089.21 by 2:12 p.m. EST (1912 GMT).
The material has been provided by InstaForex Company – www.instaforex.com