America’s Roundup: Dollar rises on robust US jobs data, Wall Street ends in green, Gold slides, Oil prices climb more than 2%

Posted at 09 December 2023 / Categories Market Roundups

Market Roundup

•US Nonfarm payrolls increase 199,000 in November

•Saudi, Russia call for all OPEC+ members to join supply cuts

•US Nov U6 Unemployment Rate  7.0%,7.2% previous

•Canada Capacity Utilization Rate (Q3) 81.0% forecast,81.4% previous

•US Nov Average Hourly Earnings (YoY) (YoY) 4.0%, 4.0% forecast, 4.1% previous

•US Nov Participation Rate  62.8%, 62.7% previous

•US Nov Average Weekly Hours 34.4, 34.3 forecast,34.3 previous

•US Nov Unemployment Rate  3.9% forecast,3.9% previous

•US Nov Average Hourly Earnings (MoM) 0.4%,0.3% forecast,0.2% previous

•US Nov Nonfarm Payrolls  199K ,180K forecast,150K previous

•US Nov Private Nonfarm Payrolls150K, 153K forecast,99K previous

•US Nov Government Payrolls 49.0K, 51.0K previous

•US Nov Manufacturing Payrolls  28K, 30K forecast,-35K previous

•US Dec Michigan 1-Year Inflation Expectations   3.1%,4.5% previous

•US Dec Michigan 5-Year Inflation Expectations 2.8%, 3.2% previous

•US Dec Michigan Consumer Sentiment  69.4,62.0 forecast,61.3 previous

•US Dec Michigan Consumer Expectations  66.4,57.0 forecast,56.8 previous

•US Dec Michigan Current Conditions  74.0, 68.5 forecast,68.3 previous

•U.S. Baker Hughes Oil Rig Count  503,505 previous

•18:00   U.S. Baker Hughes Total Rig Count 626, 625 previous

Looking Ahead Economic Data(GMT)

•No Data Ahead

Looking Ahead Events And Other Releases(GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro dipped  on Friday  after US jobs data indicating accelerated job growth in November and a decline in the unemployment rate, reflecting underlying robustness in the labor market. The Labor Department's Bureau of Labor Statistics reported that U.S. nonfarm payrolls increased by 199,000 jobs last month, surpassing economists' expectations of 180,000 jobs.The employment report indicated a decline in the unemployment rate to 3.7%. This suggests that earlier financial market predictions of the U.S. Federal Reserve potentially shifting towards interest rate cuts as early as the first quarter of 2024 might have been premature. The euro fell 0.31% to $1.0758. Immediate resistance can be seen at 1.0789(5DMA), an upside break can trigger rise towards 1.0842( (23.6.%fib).On the downside, immediate support is seen at 1.0770(38.2%fib), a break below could take the pair towards 1.0714(50%fib).

GBP/USD: The pound declined against dollar on Friday after strong U.S. jobs report  bolstered investor confidence about a soft landing for US economy. Investors scaled back their expectations of a Federal Reserve interest rate cut in March following a Labor Department report indicating a rise of 199,000 jobs in nonfarm payrolls for November, surpassing the estimated increase of 180,000 jobs. Interest rate futures indicate that traders largely anticipate the Federal Reserve to maintain the current interest rates during its upcoming meeting, as per the CME FedWatch tool. Nevertheless, futures prices now suggest that traders predominantly anticipate the Fed to commence rate cuts in May. The pound dropped 0.38% to $1.255, and was set for a weekly decline. Immediate resistance can be seen at 1.2623(11DMA), an upside break can trigger rise towards 1.2653 (23.6%fib).On the downside, immediate support is seen at 1.2549 (38.2%fib), a break below could take the pair towards 1.2507(Daily low).

USD/CAD: The Canadian dollar slightly strengthened against the US dollar but still marked its first weekly decline in four weeks due to the Bank of Canada maintaining interest rates and the US jobs data favoring the greenback. The Canadian central bank kept its benchmark interest rate at 5% on Wednesday expressing on-going concerns about inflation, it signaled the possibility of another rate hike. However, the bank also acknowledged an economic slowdown and a widespread decline in prices. The price of oil, one of Canada's major exports, clawed back some recent declines as Saudi Arabia and Russia lobbied OPEC+ members to join output cuts. The loonie   was trading 0.1% higher at 1.3585 to the greenback , after moving in a range of 1.3551 to 1.3609. Immediate resistance can be seen at 1.3581 (5DMA), an upside break can trigger rise towards 1.3617 (38.2%fib).On the downside, immediate support is seen at 1.3556(38.2% fib), a break below could take the pair towards 1.3476(23.6%fib).

USD/JPY: The dollar initially dipped    against the yen on Friday but recovered   ground after US  jobs data .U.S. job growth gained momentum in November according to the Labor Department's employment report, which revealed a rise of 199,000 jobs in nonfarm payrolls last month. This figure exceeded the estimated 180,000 predicted by economists, following an unrevised increase of 150,000 jobs in October. Additionally, the unemployment rate dropped to 3.7% from October's near two-year high of 3.9%.Additional data from the University of Michigan indicated a notable improvement in U.S. consumer sentiment for December, surpassing expectations. This positive upturn halted a consecutive four-month decline, as households perceived a reduction in inflationary pressures. Strong resistance can be seen at 144.41(38.2%fib),an upside break can trigger rise towards 146.57(50%fib).On the downside, immediate support is seen 143.95(23.6%fib)a break below could take the pair towards 142.49 (Daily low).

 Equities Recap

European shares surged on Friday, briefly reaching their highest level since February 2022, concluding their fourth consecutive week of gains.

UK's benchmark FTSE 100 closed up by  0.54 percent, Germany's Dax ended up by 0.78 percent, France’s CAC finished the day up by 1.32 percent.                

U.S. stocks closed higher on Friday after a robust U.S. jobs report fueled investor optimism about a soft landing for the economy.

Dow Jones closed up  by  0.36% percent, S&P 500 closed up by 0.41 % percent, Nasdaq settled up  by 0.45%  percent.

Commodities Recap

Gold prices declined below $2,000 per ounce as the dollar   gained strength  traders scaled back expectations for U.S. interest rate cuts to occur by March, following stronger-than-expected jobs data.  

Spot gold fell 1.4% to $2,000.49 per ounce by 2:15 p.m. ET (1915 GMT) after hitting a session low of $1,994.49 earlier. Prices were down 3.4% so far for their worst week in ten.U.S. gold futures settled 1.6% lower at $2,014.50.

Oil prices gained more than 2% on Friday as U.S. data supported expectations of rising demand. However, due to persistent oversupply concerns, both benchmarks fell for the seventh week in a row, the longest run of weekly declines in five years.

Brent crude futures settled at $75.84 a barrel, up$1.79, or 2.4%, while U.S. West Texas Intermediate crude futures settled at $71.23, up $1.89, or 2.7%.

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