NFP Friday the main focus for markets

September 1, 2017

A big night for markets, with plenty of information set for release from around the world.

The Euro strengthened modestly against the USD overnight, threatening to once again break through the $1.20 barrier, before pulling back a little to around $1.191 at the time of print. As non economic events have seemingly subsided, it would appear that economic data will be the most likely driver of currency fluctuations.

Gold also strengthened overnight, reaching as high as $1,327.40, before edging back slightly to its current level of $1,326.30. This is due in part to a weakening of the USD. With plenty of data from the US tonight, gold may fluctuate if strong beats are posted, particularly after the Non-Farm Payrolls data.

Turning to the indexes, all three major US indexes posted gains, with the NASDAQ finishing almost 1% up. Meanwhile, the Dow Jones and S&P 500 posted their fifth straight monthly gains. European stocks finished with gains across the board.

The most significant data set for publication tonight is the Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate. This is significant as it reflects the strength of the US jobs market. The Fed Reserves also look at this data closely when they are deciding monetary policy settings for the nation. These figures can also cause market fluctuations, such is their importance.

As for the other economic data announcements:

US – Final Manufacturing PMI, ISM Manufacturing PMI, Revised UoM Consumer Sentiment & Inflation Expectations, ISM Manufacturing Prices, Construction Spending and Total Vehicle Sales.

Europe – European, German & French Final Manufacturing PMIs, Italian, Spanish & Swiss Manufacturing PMIs and Swiss Retail Sales

China – Caixin Manufacturing PMI

UK – Manufacturing PMI

Japan – Consumer Confidence

Australia – Commodity Prices

Canada – Manufacturing PMI.

Finally, the US and Canada both have bank holidays on Monday.