Daily summary: US jobs data sparks uncertainty on markets

10:02 PM February 3, 2023

  • European indices finished today's session in mixed moods, with the benchmark Stoxx 600 rising 0.3% to an over 9-month high, British FTSE 100 reached new al-time high, while DAX fell 0.21% following the releases of higher-than-expected PPI numbers from the Eurozone and stronger-than-expected job growth in the US.
  • Major Wall Street swings between gains and losses on Friday as traders try to assess the latest data from the US economy. 

  • NFP report showed that US job growth accelerated sharply in January, while ISM data showed that the services sector, which accounts for more than two-thirds of US economic activity, rebounded sharply in January. 

  • On one hand, data suggest that the US economy remains resilient despite rate hikes, however it threw some cold water into expectations that the Fed will soon end its tightening campaign.

  • Earlier weak earnings from  tech giants Apple, Google parent Alphabet, and Amazon.com weighed on market sentiment, prompting investors to reassess the sustainability of the recent market rally.

  • US Secretary of State Anthony Blinken is postponing his trip to China due to a balloon incident in US airspace.

  • Oil prices also experienced increased volatility on Friday. Oil WTI tested local resistance at $77.80, however sellers regained control and price plunged more than 3.0% to $73.70.

  • Precious metals weakened further during today's session amid stronger dollar and higher treasury yields. Gold fell over $2.5% and broke below key support at $1875, while silver lost over 4.0% and is testing $22.35 mark.

  • The US Dollar is the dominating force on the Forex market. Greenback strengthened around 2.0% against the antipodean currencies and yen, 1.3% against GBP. The EURUSD pair fell 0.90%, however still trades above crucial support at 1.08.

  • Mixed moods prevail on the crypto market. Bitcoin pulled back below resistance at $24000 and currently osculates around $23400 area, while Ethereum trades flat around $1650.

NZDUSD is one the weakest (and biggest movers) of the major currency pairs. Pair dropped 2.30% on Friday as buyers failed to break above key resistance at 0.6500. Nearest major support to watch is located around 0.6230. Source: xStation5

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