US jobs data in focus

October 8, 2020

Another busy day ahead for markets, with attention squarely focussed on the US again.

The EURUSD made small gains overnight after opening at $1.17326. After dipping to a low of $1.17243, the euro climbed throughout mid-session trading, peaking at $1.17813. It came away from those highs late in the day and is now trading at $1.17654. Beginning the day at $1.28751, the GBPUSD lifted to a high of $1.29293 mid-session. It fell from those highs, bottoming-out at $1.28436 a few hours later. However, the pound rebounded and regained most of those earlier losses late in the day. It is now trading at $1.29161.

Indices went off to the races overnight as they seemingly shook off the stalled stimulus bill in the US. The Dow opened the day at 27,695.40 and dipped to a low of 27659.13 in the first hour of trade. It was basically all up from there as the Dow surged to a late high of 28,373.68. It is not far from those highs and is currently trading at 28,356.30. The Dax endured a wild session after opening at 12,810.45. The German index slipped to lows of 12,795.93 early before racing to a near session-high of 12,955.71 mid-session. The Dax fell from that point, hitting 12,831.52 late but then rebounded, reaching highs of 12,958.61 before closing at 12,937.20.

The day ahead sees markets focus on the Unemployment Claims data set for release from the US later tonight. A further 820,000 people are expected to have claimed unemployment insurance in the past week.

Other data published today includes:

China – Caixin Services PMI

US – Natural Gas Storage

Japan – Economy Watchers Sentiment

Canada – Housing Starts, BoC Governor Tiff Macklem speaks

UK – FPC Statement & Meeting Minutes, BoE Governor Andrew Bailey speaks

Europe – German Trade Balance, Swiss Unemployment Rate, ECB Monetary Policy Meeting Minutes, SNB Chairman Thomas Jordan speaks