-
NFP report for August well below expectations
-
USD tumbles after jobs data, precious metals gain
-
European equity markets pull back
Friday was all about key labour market report from the United States for August. The long-awaited data disappointed as the headline non-farm payrolls came in at just 235k, well below the consensus estimate of 750k. The report also showed that wage growth accelerated. As a result, the US dollar plunged against major currencies - it is said that weak jobs data may be an excuse for the Fed not to taper so soon as previously expected. EURUSD tested the 1.19 mark (+0,20%) while USDJPY fell to 109.65 (-0.25%).
Precious metals gained on the weaker USD. The move on the gold market was significant indeed as the price jumped from $1,813 to $1,830 an ounce. Silver prices advanced as well. Meanwhile, European equity markets pulled back on Friday. The German DAX (DE30) plunged by almost 200 points, but managed to erase some losses. The cash index finished the day 0.37% lower. US indices declined after jobs data as well. Nasdaq100 (US100) has already recovered losses and is trading higher on the day while other major indices are lagging behind.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appISM services PMI data from the United States were interesting as well. The headline figure fell to 61.7 from 64.1 a month ago (but still, slightly above forecasts). "There was a pullback in the rate of expansion in the month of August; however, growth remains strong for the services sector. The tight labor market, materials shortages, inflation and logistics issues continue to cause capacity constraints", said Anthony Nieves, Chair of the ISM.
Traders from the United States and Canada will have a day off on Monday due to Labor Day. With no major events in economic calendar, Monday’s session is likely to be a muted trading day.
The situation on the gold market is getting interesting these days. The recovery move started in August continues and gold bulls are currently testing the $1,830 an ounce mark - a major resistance for now. Note that buyers were unable to smash through this level three times in July and August 2021. Should they succeed this time, the attention may shift towards next major resistance near $1,875. Gold prices could be impacted by central bankers’ speeches next week - 6 Fed members will deliver speeches on Wednesday alone! Traders will surely tune in. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
