Key Takeaways:
US dollar slipped ahead of labor market data release
Dollar Index traded 0.1% lower at 106.180
Market awaits weekly initial claims and NFP data for future rate move guidance
Euro climbed despite French political turmoil- German factory orders and French industrial production down, suggesting weak growth
UK construction activity data rose, helping GBP/USD
USD/KRW rose as South Korea implements market stabilization fund and monetary measures if needed- EUR/USD outlook remains bearish with declining EMAs
RSI rebounds above 40.00 signaling faded bearish momentum
Nonfarm Payrolls report is an important indicator for forex traders
Fed policies impacted by labor market developments
Bitcoin surpasses $100K, technical outlook suggests rally
Market focuses shift to mid-tier US data releases
Gold price moves consolidatively amid mixed fundamental cues- Low spreads important for reducing trading costs
- Oil prices climb on hopes of demand recovery
Euro strengthens against the dollar- Sterling falls amidst Brexit uncertainties
- Asian stocks rise as trade tensions ease
Market Report:
The US dollar saw a decline in value ahead of the release of important labor market data. The Dollar Index also experienced a decrease, trading 0.1% lower. Investors are eagerly awaiting the weekly initial claims and Nonfarm Payrolls (NFP) data to gain insights into future rate movements.
Meanwhile, the Euro managed to climb despite political turmoil in France. However, economic indicators from Germany and France painted a picture of weak growth, with both countries reporting declines in factory orders and industrial production.
In the UK, construction activity data rose, positively impacting the GBP/USD pair. On the other hand, the collapse of the French government is expected to affect the economy and budget deficit.
The Euro strengthened against the dollar, with the EUR/USD pair striving to stay above 1.0500. Investors are looking towards the European Central Bank (ECB) to potentially cut the Deposit Facility Rate by 25 basis points.
Overall, the market is experiencing fluctuations in currency values, with the focus shifting to mid-tier US data releases. Asian stocks rose as trade tensions eased and gold prices moved consolidatively amid mixed fundamental cues. Additionally, oil prices climbed on hopes of demand recovery, while Bitcoin surpassed $100K, signaling a potential rally in the cryptocurrency market.