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Markets Await Friday’s Non-Farm Payrolls

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EUR
On Thursday, the European Central Bank (ECB) kept its benchmark interest rate and asset purchase program unchanged, as was widely forecasted. The ECB stuck with the same rate of asset purchases announced in January with the monthly rate due to come down from 80 billion euros ($84.4 billion) to 60 billion euros in April.

  • Euro recovered vs. USD and settled at $0585, in anticipation of Non-Farm Payrolls report.

USD
The Greenback declined vs. a trade-weighted basket of counterparts amid a lack of economic data. Markets are awaiting Friday’s non-farm payrolls report as it is expected to have changed by 190k. In addition, the unemployment rate is anticipated to tick down to 4.7% from the 4.8% recorded in February.

  • The U.S. dollar index, which measures the Greenback’s strength against a trade-weighted basket of major currencies, settled at 101.960.

Gold
Gold settled below $1,200, its worst week in four months, as the market now put a 90% chance on the Federal Reserve hiking rates at its March 14-15 meeting. As the yellow metal is awaiting an important release, we have to watch this release closely, as a higher than expected reading should be taken as bearish for the yellow metal, while a lower as expected reading should be taken as bullish for the yellow metal and it could hit key of $1,200.

Oil
Oil prices settled below $50 for the first time since December 2016, as the global supply glut persists despite the OPEC cut deal. U.S. crude oil fell as much as 2% and traded below $48.50 before recovering to $49.50 due to a weak USD.

The most important economic events:

  • USD Unemployment Rate (FEB): (GMT: 13:30) – Important – Forecast (4.7%) – Previous (4.8%).
  • USD Change in Non-farm Payrolls (FEB): (GMT: 13:30) – Important – Forecast (200k) – Previous (207k).

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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