Holding back for jobs data

7 July, 2016

There were no great revelations in the Fed minutes yesterday, the narrative being pushed that the Fed remains data dependent and concerns over the job market weighing more heavily. This puts tomorrow’s US employment report ever more in focus and markets are going to largely tread water between now and then. We’ve seen a dramatic shift in Fed expectations over the past few weeks, pushed by the US jobs data and the uncertainties created by the Brexit vote. There are growing concerns that the US is facing a more sustained cyclical slowdown in the economy, which will put to bed any further expectations of Fed tightening of this year. The market currently places a less than 10% probability on this scenario.

Stocks are feeling more punchy after yesterday’s overall negative session, opening around 1% higher on the main European bourses. In the UK, the suspension of various property investment funds continues to make the headlines, but this should be seen as a sideshow, given the inherent nature of a fund that has daily liquidity and invests in illiquid assets. Note that the BoE meets next week and expectations are strong that we will see some sort of easing in policy, but the BoE could well be leaning heavily on the message from its network of agents around the country to get a feel for post-vote reading on the economy.

For today, there are some data releases of interest, such as the ADP data in the US and the ECB ‘account’ of its meeting. Sterling has recovered from the low’s seen yesterday on cable, which is not surprising given the extent of the sell-off seen in the prior couple of sessions. Meanwhile both EURUSD and USDJPY are facing key levels of 1.10 and 100.00 respectively, but neither look under threat ahead of tomorrow’s US jobs numbers.


Source link  
Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...


Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

Strong data supports U.S. markets

Stocks of the Emerging Markets remain under pressure on Wednesday morning, with positive sentiments prevailing in American markets following...

Pound press dollar on news about Brexit

Michael Barnier, the EU's top negotiator on Brexit, called a reaching of the agreement on the deal within next 6-8 weeks realistic. This news supported...


Brent reversed from resistance level

Brent Crude Oil recently reversed down sharply from the major, multi-month resistance level 79.50 (which has reversed the price multiple times from the...

EM Markets sale-off spreading to DM

The current weakness on the developing countries financial markets is the longest since 2008. The similarities go further than that: as well as 10 years ago...

The price for trade uncertainty

The markets are cautiously on buy for American stocks, and the dollar adds on fears that trade conflicts are seriously stifling the business sentiment...


In the past 24 hours Bitcoin has lost -0.35% and reached $6469.56064216. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -2.87% and is now at $203.90072644. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: