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US labour market report tops expectations
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The US dollar jumps across the board
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Precious metals and tech stocks under pressure
Friday was all about the NFP report. The labour market data surprised to the upside as the US economy added 943k jobs in July, the most in eleven months and well above market consensus of 900k. Not only was the July’s data better-than-expected, but also the June’s print was revised to the upside. Elsewhere, employment data from Canada came in below forecasts and industrial production from several European countries fell short of expectations.
Strong NFP report strengthened the US dollar and pushed US bond yields higher. The greenback is stronger across the board, EURUSD fell to 1.7600 (+0,60%) while USDJPY climbed above 110.25 (+0,47%). Precious metals plunged more than 2% amid stronger USD, with gold prices falling towards $1,760 an ounce. Oil prices continue declines as well.
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Create account Try a demo Download mobile app Download mobile appMost indices from the Old Continent finished the day higher. In fact, European stocks gained for a fifth straight session and posted their best week since March. Strong corporate earnings certainly have been partly fuelling the rally. A mixed session in the US reflects the jobs data - while tech stocks are trading lower, small caps or banks are moving higher.
Cryptocurrencies are rallying on Friday evening - this market remains open through the weekend. Bitcoin gains more than 5% and reaches levels not seen since mid-May. Monday will be relatively “soft” in terms of economic calendar, but traders will surely pay attention to inflation data from China and trade balance from Germany.
USDJPY climbed to highest levels since late-July on the back of strong NFP data. The pair reached 110.34-110.40 area that may turn out to be a major resistance in the near-term (see previous price action). Source: xStation5
