The dollar has remained bid against most currencies post-Friday’s U.S. jobs report. The greenback rose on Friday in reaction to the mixed-bag nonfarm payrolls report which showed a weaker-than-expected headline number, but that was offset by positive revisions to the previous reports and a decent but expected rise in average hourly earnings figure.
Escalating trade tensions between the U.S. and China remain the financial markets’ hottest topic. President Donald Trump seems to be celebrating winning the first battle of this war, saying that “tariffs are working big time” in a Tweet on Sunday. He says that they will enable the U.S. to start reducing the large amount of debt accumulated throughout President Barack Obama’s administration.
After a significantly busy week, things are understandably going to be quieter next week. After all, we’ve already had three major central bank rate decisions from the likes of the BoJ, BoE and Fed and also some really important economic data, including the U.S. Non-farm payrolls report. But despair not, we will still have two more central bank meetings to look forward to in the first half of the week and some rather important economic data at the end of the week, too.
U.S equity benchmarks melted higher yesterday. The S&P hit our major three-star support dead on early in the session before reversing strongly and settling right at major three-star resistance. The two biggest companies in the world did what they do best; lead. Apple gained another 3% yesterday, tallying a near 10% gain on the week from our buy target at 188-190. Amazon added 2% and Microsoft 1.2% while the disheveled Facebook and Netflix both bounced back from recent earnings disappointments.
As we noted yesterday ahead of today’s NFP release, “[There have been] no signs that a pickup in price pressures is imminent, [and therefore] the Federal Reserve is content to stick with its gradual, every-other-meeting rate hike schedule…”. Today’s U.S. jobs report will do little to blow the Fed off course.
Snapback after a whack, give a dog a bone, this old man comes rolling home. It looked doomy and gloomy in crude oil for a while as trade war fears and reports of increases in OPEC and Russian oil production weighed on market psyche. Yet, after a report about another drop in supply in the Cushing, Okla., delivery point, and talk that U.S. oil production is not what it was reported to be, the mood quickly shifted.
Before this eventful week is over, there’s just the small matter of the U.S. monthly employment report to consider. Ahead of the release of the nonfarm payrolls data, the US dollar has regained its poise slightly, although it still remains stuck inside the one-month-old range. Could the NFP cause it to finally break out in one or the other direction? The U.S. Department of Labor will report on Friday at 13:30 BST or 08:30 EDT the number of jobs added to the U.S. economy in July, the unemployment rate, and key wage growth figures.