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Daily Analysis: Dollar Crushed as Jobs Friday Disappoints

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Daily Analysis: Dollar Crushed as Jobs Friday Disappoints

Introduction

This article was posted on Friday, 16:15, UTC.

Friday Market Recap

Asset Current Value Daily Change
S&P 500 2433 0.17%
DAX 12834 1.35%
WTI Crude Oil 47.17 -2.42%
GOLD 1278.00 0.85%
Bitcoin 2402 -0.63%
EUR/USD 1.1273 0.54%

Stock markets are mixed today so far following the crucial US Employment Report as European and Asian markets are up significantly while the main US indices are virtually unchanged. Non-farm payrolls came in at 138,000, well below the expected 181,000 while the last reading was also revised lower. The DAX touched its all-time high earlier today, outperforming its global peers, while the NIKKEI jumped to new highs above the 20,000 level before the Dollar slump. The negative employment report might push the Federal Reserve towards a more cautious rate-hike schedule, and sure enough, Treasuries are rallying strongly. This could have a profound effect on all asset classes if the US economy remains soft.

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Gold is among the biggest beneficiaries of the today’s trends, as the Shiny Metal hit a 5-week high near the $1280 level. The Euro, the Yen, and the Swiss Franc are all up compared to the Dollar, while the Australian Dollar also recovered some of its recent losses, despite the sharp drop in the price of oil today. Industrial commodities are also lower together with oil, although the Chinese market has been relatively strong overnight.

Gold Futures, 4-hour Chart Analysis

Cryptocurrencies are broadly lower today, but the losses are limited with only Ripple losing more than 5% after yesterday’s surge. Ethereum continues to consolidate below its recent highs, while Bitcoin is trading near the $2400 level as it failed to move above the short-term resistance sustainably.   Litecoin is still stuck below $30, while Dash and Monero are a tad below their recent highs, still looking fairly bullish. Stratis and Bytecoin are the stars of the day, as Stratis almost hit 0.0035 compared to Bitcoin, rising by more than 40%, with Bytecoin also being up by almost 50%.

Ripple, 4-Hour Chart Analysis

Technical Picture

 

The DAX S&P is close to its all-time high after breaching it in the morning, although the US data pushed the German index lower as well. The continued strength of the Euro is weighing on the benchmark, but the recent consolidation cleared the overbought condition, so further upside is possible here. The 13,000 level could be in focus next week, while primary support is still found at 12,500.

DAX Futures, 4-Hour Chart Analysis

Key Economic Releases on Friday

Time, CET Country Release Actual Expected Previous
10:30 UK Construction PMI 56.0 52.7 53.1
14:30 CANADA Trade Balance -0.4 bill 0.0 bill -0.1 bill
14:30 US Non-Farm Payrolls 138,000 186,000 211,000
14:30 US Hourly Earnings 0.2% 0.2% 0.3%
14:30 US Unemployment Rate 4.3% 4.4% 4.4%
14:30 US Trade Balance -45.5 bill -45.5 bill -43.7 bill

 

Key Economic Releases on Monday

Time, CET Country Release Expected Previous
10:30 UK Services PMI 55.8
16:00 US ISM Non-Manufacturing PMI 57.5
16:00 US Factory Orders 0.2%

Featured image from Wikimedia Commons

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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

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