The U.S. economy created 235k new jobs in February; such data could encourage the Federal Open Market Committee (FOMC) to hike the benchmark interest rate on its March 14-15 meeting and approve a quarter-point rise in its target rate to 0.75% to 1%. However, average hourly earnings remained unchanged at a seasonally adjusted 0.2% vs. 0.3% expected.
Gold pared its losses and traded above the psychological of $1,200, boosted by weak U.S. average hourly earnings. Technically, the yellow metal could re-test $1,200 during the day, due to lack of economic data and in anticipation of Federal Reserve interest-rate decision.
Euro jumped to a three-week high vs. the Greenback after a report that the ECB had discussed the possibility of hiking interest rates during the year and before the end of its quantitative easing stimulus. The common currency pared its gains to trade at $1.0680. Technically, it could settle at such levels in anticipation of Federal Reserve interest-rate decision.
Oil prices failed to pare its losses and U.S. crude oil fell as much as 10% last week as U.S. drillers kept adding rigs. Technically, U.S. crude could settle high, but it is unlikely to trade above $50.
The most important economic events:
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.