Daily summary: Positive sentiment on Wall Street ahead of NFP, dollar retreating ❗

9:02 PM June 1, 2023

  • Wall Street is gaining following positive ADP and JOLTS data, indicating a strong job market. The US500 is up nearly 1.0%, approaching 4230 points, while the US100 is up 1.30%, nearing 14500 points.
  • On Thursday, we received good employment data, with the ADP report showing a private payroll increase of 278,000 compared to a rise of 291,000 in April, surpassing expectations of just 180,000. However, on the other hand, Challenger data suggests increasing pressure for job reductions, as planned job cuts in the US reached 80,090 in May, compared to 66,990 the previous month.
  • Today's PMI and ISM indicators from the US were slightly below expectations, but their release prompted a rise in US stock indexes.
  • Tomorrow, the NFP report will be published at 14:30, which is expected to contribute to market volatility.
  • ECB President Christine Lagarde stated today that inflation in the Eurozone is still too high and further monetary policy tightening will be necessary, leading to a strengthening of the EUR. The exchange rate of the major currency pair has surged above the 1.07 USD level, with a bullish engulfing pattern forming on the D1 timeframe.
  • Among the G10 currencies, the best-performing was the Australian dollar, which gained over 1.2% against the USD. The AUDUSD currency pair broke through the key resistance zone of 0.6560-0.6570, indicating a potential change in short-term sentiment to bullish.
  • Precious metals performed well on Thursday, possibly due to the weakness of the dollar. Gold managed to test resistance around $1982, while silver is approaching the $24 level.
  • Crude oil had a solid session, with OIL prices rising by nearly 4%, and OIL.WTI experiencing a 4.5% increase, despite unfavorable inventory data showing a buildup in stock levels. The rise in oil prices may be attributed to speculation that OPEC+ will maintain its production target unchanged at the upcoming meeting on June 4. OIL.WTI prices reached a horizontal resistance zone at $70.85.
  • In the cryptocurrency market, mixed sentiment is observed. Bitcoin initially experienced a decline overnight but later saw a reversal. In the evening hours, the price hovers around $27,000, representing a 0.5% decrease for the day.

AUDUSD, D1 interval, Source: xStation5

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