FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1733
BTC/USD
42 294.79
GBP/USD
1.3640
USD/JPY
109.4985
USD/CHF
0.9224
USD/CAD
1.2799
EUR/JPY
128.4704

Record highs tempered by dismal jobs data


5 August 2021

US stock futures are modestly in the red following a record all-time close on the S&P500 last night. This latest bout of buying strength was propelled by a shift in the leadership of sectors. Lately, we have seen outperformance led by the more defensive areas of the markets, like healthcare, in place of the more interest rate sensitive parts of the market.

Big ADP Employment miss

While not a great predictor of the non-farm payrolls headline number released on Friday, the ADP employment data is always checked for any early hints about the job market. The employment index in the ISM non-manufacturing index will also be worth watching for clues on labour shortages.

Well, the ADP caused quite a shock printing a miserly addition of 330k jobs in July which was less than half the expected rise. Although this is the seventh straight month of “solid” employment gains, it is well below the consensus forecast for Friday’s payrolls print and the weakest addition since February. Bottlenecks continue to hold back stronger gains, particularly in light of new Covid-19 concerns tied to viral variants.

Markets react abruptly

All major US stock indices have dropped into the red while bond yields have plunged to the recent spike lows from July and are testing the 1.12% handle. The dollar has also fallen but remains in a tight range with last week’s low at 91.78 in the DXY on the radar.

Perhaps we need to wait for the main job market report at the end of the week. But the sharp reaction to the forerunner to the main event does ask a few questions. Is today’s weakness enough to delay the taper by the Federal Reserve? This could spark another round of buying in stocks as the stimulus punchbowl lingers for longer. Or is it the straw that breaks the back of the recovery story?

Gold touching recent highs

One asset enjoying the angst is gold which is up over 1% on the day. The 200-day moving average has capped prices so far over the last few weeks with prices struggling to break decisively above $1830. Gold bugs have pushed the precious metal to this resistance level again today with bullish momentum picking up. A strong close could finally clear the way for more upside, though the NFP report looms large.

#source

Related

Stock Futures Trade Sharply Lower
Stock Futures Trade Sharply Lower

Futures in the United States and in Europe are trading sharply lower as investors worry about the domino effect of Evergrande’s massive plunge on the Chinese property market..

21 Sep 2021

Oil market: the unbalanced demand and supply
Oil market: the unbalanced demand and supply

Oil prices climbed to higher grounds in the most recent daily sessions adding further to its upward momentum formed so far in September. The Oil market is running...

21 Sep 2021

US Markets lost major support, Asian Indices are melting
US Markets lost major support, Asian Indices are melting

Global markets closed last week on the back foot, and no significant positive factors emerged in Asian trading, increasing the flight to safety. The Hang Seng lost...

20 Sep 2021

US Retail sales and other data has supported Dollar
US Retail sales and other data has supported Dollar

The US Retail sales notably exceeded expectations, adding 0.7% in August vs an expected 0.7% decline. The increase to August last year is an impressive 14.9%...

17 Sep 2021

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.