Market Update – September 6 – USD off post NFP lows
Market News Today
- USD (USDIndex 92.18) continues at lows following NFP headline miss (pushed to 91.91) – although rest of report was strong; taper expectations slipping to Nov-Dec.
- Yields held on to gains & flattened (10yr 1.322%), while
- Equities slipped ahead of long weekend (USA500 -0.03% @ 4535, FUTS at 4538 now). Nikkei + 2% looks like Covid Minister (Taro Kono) will be new PM.
- USOil crashes following price cuts from Saudi Arabia to Asian customers. From $70.00+ on Friday down to $68.00, now.
- Gold holds Fridays gains (rallied from $1805 to $1832 peak) trades at $1827 now.)
- Overnight – Asian stock markets were mixed, Nikkei lead markets higher on leadership talk. Chip shortages continue to gain headlines (Mercedes “through 2022”, GM factories on “idle”, CBI in UK warn of problems for “at least 2 years”.) NZ to ease Covid lockdowns, cases in Australia to peak within two weeks (emphasis now on vaccinations; 75% of NSW/Victoria popn. has now had first vax.)
Week Ahead RBA, (Tuesday) BOC (Wednesday) and top of the shop ECB (will Ms Lagarde talk taper dates?) – key US data is PPI (Friday) and JOLTS (Wednesday). Plus EU & JPY GDP (Tuesday), Chinese inflation (Thursday) and Canadian jobs (Friday).
European Open – December 10-yr Bund future down 8 ticks, US futures also fractionally lower. US payroll number headline may have been weaker than expected, but was strong in the details& against that background markets still seem to waiting for ECB to announce a slight tapering in monthly asset purchase levels this week. Lagarde will play down the importance though & is likely to once again stress the forcefully dovish guidance on the rate outlook & highlight the fact that asset purchases at levels seen in the first quarter would still mean sizeable support.
DAX and FTSE 100 futures are up 0.1% and U.S. futures are also fractionally higher. In FX markets EUR and Sterling declined against a largely stronger dollar, leaving EURUSD and Cable at 1.1872 and 1.3851 respectively. AUD & NZD gave given up some of the least two weeks gains ahead of RBA tomorrow. USDJPY has lifted to 109.80 from Fridays close at 109.67.
Today – US & Canada closed for Labor Day German Industrial Orders, EZ & UK Construction PMIs, EZ Sentix Index.
Biggest Mover @ (06:30 GMT) AUDUSD (-0.30%) Slioped from 0.69% gain on Friday into 0.7445 close, to 0.7480 now. Faster MA’s now flat, MACD signal line & histogram still above 0 line but falling RSI 53.30 and flat. Stochs rising from OS zone. H1 ATR 0.0009, Daily ATR 0.0062.
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