Daily summary: JPY gains strongly. Wall Street await NFP report in good moods

7:02 PM 7 December 2023
  • Stock market in Europe ended today session in weaker sentiments. Germany 'bluechip' DAX lost only 0.16% but the discount on indices in Spain, Italy, or Portugal reached 0.6-1.2%.
  • Wall Street indexes halted yesterday's declines and are trading higher. The best performer is the technology Nasdaq 100, which gains 1.2%, with the S&P500 rising 0.8% and the Dow Jones adding 0.3%.
  • Among U.S. technology companies, AMD and Alphabet shares, with both companies gaining on the AI wave. In the background of the euphoric wave was the debut of the new AI 'Instinct' chip MI300X and the Gemini language model from Google.
  • The dollar lost during Thursday's session. EURUSD reached support at 1.0760, where we can see more active demand. JPY pairs are recording solid losses - the yen is strengthening as much as 2.6% against the US dollar. AUD and NZD are also clearly gaining against the USD, 0.85% and 0.63% respectively. 
  • U.S. jobless claims came in as expected at 218,000 vs. 220,000 previously, and still point to relatively low levels. 
  • The US Challenger report came in much weaker than claims and indicated an increase in layoffs, at a time when employers are reluctant to increase hiring quickly. A commentary on the report indicated that there will be a further wave of job cuts in 2024, with November layoffs in the U.S. up 24% from October
  • Macro data in the U.S. pointed to a 1.2% m/m decline in wholesale sales versus an expected increase. Wholesalers' revenue from inventory sales also fell, signaling weaker consumers
  • Cryptocurrencies are trading higher as the market is pricing in a higher chance of ETF approval by the SEC. NAnew reports from Reuters indicate that talks between the SEC and the institutions are already at a fairly advanced stage although anonymous sources stressed that a final decision has not been made.
  • Crude oil is trading at a token gain on a daily basis, but the main sentiment remains downward. The WTI price remains below $70 per barrel, and Brent below $75 per barrel
  • Natural gas final notes a 1% gain amid a larger-than-expected decline in inventories according to the EIA report, it was -117 bcf vs. -110 bcf forecast and 10 bcf previously
  • Platinum and palladium are trading up more than 2%, while silver and gold remain muted. Gold holds near $2030 per ounce
  • Currently, markets are looking ahead to tomorrow's US labor market data (Non-Farm Payrolls), which will be released at 1:30 PM GMT

EURUSD reacts after reaching 1,076 support zone. Looking at D1 interval, we can see bullish reversal formation forming. Source: xStation5

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