Investors maintain a risk-sensitive ahead of US jobs data. Geopolitical tensions between Washington and Beijing widens as China imposed sanctions on US House Speaker Nancy Pelosi over her Taiwan visit. UK’s House prices missed targets renewing recession fears following the BOE’s rate hike. Central Bankers continue to signal that inflation hasn’t peaked yet.
USDJPY gained +0.21% ahead of the US employment data. The dollar rose despite a negative forecasted Non-Farm Payrolls for July as FOMC members denounced a pivot in the rate hike cycle. The NFP data is expected to drop to 250K vs 372K previous reading. However, the Yen is weak vs the Dollar with interest rates divergence also in play. Upside gains are capped by 133.500 and a break above may set targets at 136.00. Intraday support is at 132.50.
GBPCAD was steady ahead of CAD’s employment data. The number of people employed is set to rise to 20K from a previous reading of -43.2K. The unemployment rate however is expected to rise to 5.0% from 4.9%. Canada’s Ivey PMI is forecasted to be negative at 60.3 vs 62.2 previous. The UK housing data disappointed at -0.1% vs 1.2% surveyed. The BoE hiked rates by 50bps on Thursday warning of a long recession in the country. The pair is trading at +0.05% with an upside cap at 1.56800 and an intraday support at 1.56200.
European stocks were mixed as investors weigh Q2 corporate earnings. FTSE100 was down by -0.01% trading slightly above the 7420 support. A move lower may reinforce bearish targets to 7370 and 7300 levels. Upside movement is capped by the 7480 and 7500 levels.
CAC 40 plummeted by-0.24% on a negative French trade balance which came in at -13.1B vs -12.6B forecasted. The index fell from an intraday high at 6520 and bears may target the 6400 and 6250 levels.
DAX dropped by -0.09% despite a lift in German Industrial Production data which came at 0.4% vs -0.3% expected. The index has an intraday high residing at 13750, and the next critical support levels is at 13500 and 13200 levels.
US stock futures were steady as investors eye key US employment data. DJIA Index futures were flat at +0.02%, trading slightly below the 33000 resistance. A bullish break could cause a price target at 33500 and 34000 in the short term. However, failure to break above that level could trigger a correction towards the 32000 level.
S&P500 futures are down -0.03% rangebound between the 4165 high and 4150 low. A break to the downside may set targets at 4075 while a move higher may give bulls 4300 if 4200 is breached.
Nasdaq100 futures slumped by -0.17% weighed by Tech stocks and a further slide may cause bears to target 13000 support-turned-resistance. Upside gains are capped by 13600 psychological level.
In commodities, US WTI prices breached the key support at $90.00 per barrel on Thursday due to the global economic downswing. US Wednesday Crude oil stock inventories rose to 4.46M from a forecasted -0.629M indicating a weakening demand for crude oil. Bulls struggled to maintain gains above the $88.00 support. A move lower could target the 85.00 level in the near term.