News

Dollar Index Hovers Near a 3-Week High Ahead of US Jobs Report

USD

The dollar index which measures the greenback against a basket of major currencies reversed Wednesday's losses and inched higher towards a high of 97.34 as market participants await the March jobs report. The US economy is expected to have created 175 thousand jobs in March, while the unemployment rate held steady at 3.8%, and the average hourly earnings rose 0.2% MoM. The US 10-year Treasury yields climbed to a two-week high of 2.536%, the USDJPY hit a three-week high of 111.80, and the EURUSD tumbled to $1.1206.

Equities

Major US stock index futures extended gains amid growing optimism over trade talks between China and the United States. The Chinese vice Premier declared that they reached a new consensus on the text of the trade agreement. Both parties are constantly stating that there is progress in talks which is helping to sustain investors' risk appetite. The Dow Jones Industrial Average futures climbed to a six-month high of 26435, the S&P500 futures edged higher towards 2887.50, and the Nasdaq futures rose to 7598. Market participants will shift their focus slightly towards the US jobs report which provides insight about the performance of the US economy.

Metals

Gold prices ended higher after a choppy trading day where the price of a gold ounce fell to a one-month low of $1281 and bounced back up to $1292. Prices have been trading in a twenty-dollar range as market participants await the US jobs reports. The silver ounce hovered around $15, while palladium dropped for the second consecutive day to a low of $1361.

Oil                                                                                    

Oil prices drifted lower as investors were seen taking profits following the sharp rally. The ongoing market fundamentals such as the Venezuelan turmoil and the possibility of imposing more sanctions on Iran, along with the OPEC-led supply cuts are backing up prices. The West Texas Intermediate crude futures dropped to a low of $61.87, and Brent futures declined to a low of $68.85.

Major Economic Events

GMT Country Event Expectation Previous

12:30

US

Average Hourly Earnings (YoY) (YoY) (Mar)

3.4%

3.4%

12:30

US

Nonfarm Payrolls (Mar)

175

20

12:30

US

Unemployment Rate (Mar)

3.8%

3.8%

12:30

CA

Employment Change (Mar)

-10

55.9

12:30

CA

Unemployment Rate (Mar)

5.8%

5.8%

17:00

US

U.S. Baker Hughes Oil Rig Count

 

816

 
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