Posted at 03 September 2021 / Categories Market Roundups
•French Jul Government Budget Balance -166.6B,-131.3B previous
• Italian Aug Services PMI 58.0,58.5 forecast, 58.0 previous
• Italian Aug Composite PMI 59.1,58.6 previous
• French Aug Markit Composite PMI 55.9,55.9 forecast, 55.9 previous
• French Aug Services PMI 56.3,56.4 forecast, 56.4 previous
• German Aug Composite PMI 60.0,60.6 forecast, 60.6 previous
• German Aug Services PMI 60.8, 61.5 forecast, 61.5 previous
• EU Aug Markit Composite PMI 59.0,59.5 forecast, 59.5 previous
• EU Aug Services PMI 59.0,59.7 forecast, 59.7 previous
• UK Aug Services PMI 55.0,55.5 forecast, 55.5 previous
• UK Aug Composite PMI 54.8,55.3 forecast, 55.3 previous
Looking Ahead –Economic Data (GMT)
• 12:30 Canada Labor Productivity (QoQ) (Q2) -1.7% previous
• 12:30 US Aug U6 Unemployment Rate 9.2% previous
• 12:30 US Aug Participation Rate 61.7% previous
• 12:30 US Aug Unemployment Rate 5.2% forecast, 5.4% previous
• 12:30 US Aug Average Hourly Earnings (YoY) (YoY) 4.0% forecast, 4.0% previous
• 12:30 US Aug Average Weekly Hours 34.8 forecast, 34.8 previous
• 12:30 US Aug Nonfarm Payrolls 750K forecast, 943K previous
• 12:30 US Aug Private Nonfarm Payrolls 665K forecast, 703K previous
• 12:30 US Aug Manufacturing Payrolls 25K forecast, 27K previous
• 12:30 US Aug Average Hourly Earnings (MoM ) 0.3% forecast, 0.4% previous
•13:45 US Aug Services PMI 55.2 previous
•13:45 US Aug Markit Composite PMI 55.4 previous
•14:00 US Aug ISM Non-Manufacturing PMI 61.5 forecast, 64.1 previous
•14:00 US Aug ISM Non-Manufacturing Employment 53.8 previous
•14:00 US ISM Non-Manufacturing Prices 82.3 previous
•14:00 US Aug ISM Non-Manufacturing New Orders 63.7 previous
•14:00 US Aug ISM Non-Manufacturing Business Activity 62.8 forecast, 67.0 previous
•17:00 US U.S. Baker Hughes Total Rig Count 503 previous
•17:00 US U.S. Baker Hughes Oil Rig Count 405 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro held near a one-month high versus the dollar on Friday as market remained paused ahead of a United States jobs report that could give a sense of the timing and pace of tapering by the Federal Reserve.Fed Chair Jerome Powell has suggested an improvement in the employment numbers is the remaining major prerequisite for action, and such a move could damage risk appetite. Immediate resistance can be seen at 1.1884 (Daily high), an upside break can trigger rise towards 1.1907(23.6%fib).On the downside, immediate support is seen at 1.1868(38.2%fib), a break below could take the pair towards 1.1840 (50%fib)
GBP/USD: Sterling hovered just below a three-week high on Friday morning as markets braced for a jobs report in the United States which is expected to drive the Federal Reserve’s asset purchase policy, which will in turn impact the dollar.The pound has seen listless trading this week in the absence of major British economic data or policymaker speeches, hovering at around the $1.38 level. At 0800 GMT the pound was flat against the dollar at $1.3826, near a three-week high of $1.3839 seen on Aug. 17. Immediate resistance can be seen at 1.3880(23.6%fib),an upside break can trigger rise towards 1.3908 (Higher BB).On the downside, immediate support is seen at 1.3822(38.2%fib), a break below could take the pair towards 1.3778(50%fib).
USD/CHF: The dollar was little changed against the Swiss franc on Friday as investors prepared to recalculate their Fed tapering bets on the back of U.S. payrolls data later in the day. U.S. non-farm payrolls in August, due at 1230 GMT ahead of Wall Street’s open, are expected to have risen by 750,000, according to economists weaker than the 943,000 in July.But estimates range widely, from as little as 375,000 to over a million, and the U.S. central bank has made a labour market recovery a condition for paring back the pandemic-era asset purchases. Immediate resistance can be seen at 0.9160 (9DMA), an upside break can trigger rise towards 0.9192 (23.6%fib).On the downside, immediate support is seen at 0.9138(38.2%fib), a break below could take the pair towards 0.9098 (50%fib).
USD/JPY: The dollar was little changed against yen on Friday ahead of a closely watched U.S. jobs report that kept the dollar on the back foot. The Labour Department’s non-farm payrolls report is due at 1230 GMT, poll forecast 728,000 jobs were created in August. The Federal Reserve has made a labour market recovery a condition for paring back its pandemic-era asset purchases, making Friday’s non-farm payrolls data a major market event. The dollar stayed pinned at month lows against a basket of currencies. Strong resistance can be seen at 110.06(38.2%fib), an upside break can trigger rise towards 110.42(23.6%fib).On the downside, immediate support is seen at 109.78(50%fib), a break below could take the pair towards 109.45(61.8%fib).
European stocks slipped on Friday ahead of U.S. employment data that could influence the Federal Reserve's policy outlook, while fresh concerns about slowing Chinese growth dented the mood.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading up at 0.22% percent, Germany's Dax was up by 0.13%percent, France’s CAC finished was down by 0.42% percent.
Gold prices firmed on Friday, supported by a weaker dollar ahead of the much-awaited U.S. August non-farm payrolls report, which could influence the Federal Reserve’s plans on tapering asset purchases.
Spot gold had advanced 0.1% to $1,811.60 per ounce by 0935 GMT, but was down 0.2% for the week.U.S. gold futures rose 0.1% to $1,813.60.
Oil prices rose on Friday as a rebound in global demand was widely expected and a slow recovery for the U.S. Gulf Coast export and refining hub from the hurricane earlier this week looked set to deplete stocks further.
Brent crude futures were up 40 cents, or 0.6%, to $73.43 a barrel at 1105 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 14 cents or 0.2% at $70.13 a barrel.