- US weekly jobless claims fall to pandemic low
- Dollar under pressure
- Bitcoin faces major resistance
In today's analysis, we presented market expectations regarding Friday's NFP report. Recently, several warning factors have emerged, such as yesterday's ADP and weak ISM reading. Also, today's weekly jobless claims report may indicate, on the one hand, that employers do not lay off workers, but, on the other hand, they are not willing to hire new employees. Usually, before the restrictions, businesses first limit recruitment, and only after the restrictions are introduced, they begin to reduce employment. Anyway, expectations regarding tomorrow's report are high - on average 750k, although the latest Bloomberg consensus expects 800k, while Citi sees approx. 850k employment growth.
The aforementioned claims report fell more than expected to 340K in the latest week, the lowest level since the pandemic began, job cuts were the lowest in 24 years and exports increased 1.3% in July. Despite such upbeat data, the Atlanta Fed lowered sharply its growth forecast and now expects GDP growth in Q3 at 3.7% from previous 5.3%.
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Create account Try a demo Download mobile app Download mobile appOil was clearly gaining today, with WTI crude futures rose 2.5% after recent OPEC+ estimates of production showed that the cartel is not restoring production according to the initial agreement. This is related to production declines in Nigeria, Angolaand Russia.
EURUSD broke above 1.1850 and is heading towards 1.19. Upward move may accelerate if tomorrow NFP report will turn out to be a disappointment. Gold is trading slightly lower but still above 1,810 USD.
Bitcoin is testing major resistance at 50,000 USD amid rising institutional interest. In addition, good moods can be seen on the stock exchanges, where Wall Street indices hover near their all-time highs. European bourses finished today’s session slightly higher.
Ethereum price rose sharply this week and broke above the upper limit of the consolidation zone at $3,345 has. Currently the second most popular cryptocurrency is testing another major resistance at $3790.00 which is marked with 78.6 Fibonacci retracement of the last downward wave and upper limit of the wedge formation. Break above this zone would pave the way towards all-time high at $4355. On the other hand, if sellers manage to regain control, then the aforementioned $3.345 level should act as the first major support. Source: xStation5
