Market Update ahead of NFP
As it was expected and mentioned earlier this week, as much as we are getting closer to the NFP data should wait for stronger USD, since market pricing more and more on FED possible Hawkish; however, the risk of surprise of April is there, in case if labor data become lower than expectations.
So far, Today and ahead of the North American season, the USD trading flat by DXY at 90.50. After dazzling US data, major non-US currencies were under pressure yesterday and now trying to stay stable before the new round of US data.
EUR- fell more than 0.7% against the US dollar and gave up the gains of the past two weeks to 1.2110, and holding under 1.2120.
GBP- The British pound against the US dollar also recorded a decline of more than 0.7% to close at 1.4102; however, Today Pound is getting a bit back on its feet and trading 0.3% higher than its earlier fall.
Yen- Earlier Today, USD continued to rise more than 70 points against the Yen and surpassed the 4-day high Point, reported 110.30 (the highest level since April 6); however, the cautions market helped the Yen to gain about 0.2% Today and currently, it is trading at 110.10
Commodity currencies- New Zealand and Australian dollars, yesterday used to be the weakest currency against the US dollar. Both currency pairs recorded a decline of more than 1% to 0.7143 and 0.7656, and Today so far, trading almost at the same levels, waiting for NFP numbers to have a better reaction. The Canadian dollar also lost the ground against the USD, as the dollar was gaining, and on the other hand, Oil also eased yesterday.
XAUUSD- Same as other USD crosses, the precious metals market also suffered a sell-off. Gold fell under resistance and gave up the gains of the past three weeks to close at 1870.38m while earlier Today continued its loss to 1856, three weeks low.
XAGUSD- Silver also fell below a 2-week low and then moderately recovered to 27.39 US dollars per ounce.
WTI- In the oil market, with data showing that US gasoline demand and air passengers have reached the highest level since the outbreak of the pandemic, and while EIA data shows that inventories fell more than 5 million last week, US crude oil has not been affected by the Stronger dollar. Yesterday, the US Oil price hit a new high from March 8 to 69.12 US dollars. Today after earlier correction gained most of its loss and trading above $68.70 again
Published Economic data: According to the economic calendar, so far, we had Housing data from Japan and construction PMI from the UK, both much better than expectations, while Eurozone Retail Sales declined to -3.1% in April. And now market following Mrs. Lagard`s speech.
