NFP Friday

August 2, 2019

A big end to a tumultuous week coming up for markets.

The EURUSD went negative for most of the session before a late rally erased earlier losses. The pair opened at $1.10748 and declined early, flirting with $1.10 and hitting a low of $1.10261 mid-session. It bounced off those lows late in the day, peaking at $1.10951 and is currently trading at $1.10800. The GBPUSD followed a similar path to the euro after opening at $1.21510. The pair fell early and gradually slid to a low of $1.20782 mid-session. It climbed off those lows late in the day, hitting a high of $1.21710 before giving up some of those gains. It is currently trading at $1.21273.

News broke overnight that Donald Trump was imposing further tariffs on goods from China, sending stocks south. The Dow began the day at 26,802.41 and traded in a tight range throughout early and mid-session trading, before climbing to a high of 27,191.63. Then Donald Trump entered the fray. His trade announcement sent the Dow packing as it plummeted to lows of 26,552.80. It is not far off those lows, currently trading at 26,564.61. The Dax was not immune to the Trump announcement, succumbing under the weight of a falling Dow. The German index opened at 12,172.30 and trended up for most of the day, peaking at 12,264.18. It suffered some big losses shortly after that high however, tumbling to a low of 12,027.01 and closing at 12,068.93.

The day ahead shapes up as a big one for markets. Aside from dealing with the latest trade setback, there is some crucial economic being published by the US. Later tonight the US will be releasing Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate figures. These figures help the Fed Reserve set interest rate policies for the country.

Other data published today includes:

Australia – Retail Sales, PPI

UK – Construction PMI

Canada – Trade Balance

US – Trade Balance, Revised UoM Consumer Sentiment & Inflation Expectations, Factory Orders

Europe – Swiss CPI & Manufacturing PMI, European Retail Sales & PPI, Italian Retail Sales & Industrial Production, Spanish Unemployment Change


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