DAILY MARKET REPORT - Friday, Aug 07, 2020 - US NFP report due at 12:30 GMT today



The US nonfarm payrolls report is the main highlight of today’s economic calendar, the NFP report due at 12:30 GMT today. The market is expecting 1,580K new jobs, down on the previous month's 4,800K which takes the unemployment rate to an expected 10.5%. On Wednesday, the ADP employment increased by 167,000 jobs in July, according to the ADP National Employment Report and missed the estimates of more than 1M.


Asian markets slipped on Friday after the US President Donald Trump signed a pair of executive orders prohibiting U.S. residents from doing business with the Chinese-owned TikTok and WeChat apps beginning 45 days from now.


Crude oil prices edge lower on Friday, during the previous session the oil price traded higher after Iraq announced for an additional cut in its oil production of about 400,000 barrels per day in August to compensate for its overproduction in June and May.


The dollar slightly recovered from the 2-year low ahead of the job data and If the numbers come out worse than that of the previous month, it could send the US dollar further lower. Meanwhile, The British pound after the BOE slightly shifted its forecasts regarding the timing of the recovery of the national economy to pre-crisis levels to the end of 2021 from mid-2021.


Gold price surged to a new all-time high on Friday boosted by renewed tensions between the US and China over the executive order to ban Chinese companies and a mounting number of coronavirus infections.

Economic Outlook

On the data front, German Industrial Production expanded at a monthly 8.9% during June and exports jumped 14.9% from a month earlier, compared to market forecasts of 13.3%. During the Asian session, China reported the latest trade surplus data, the exports rose by 7.2%, the fastest pace since December last year, while imports unexpectedly fell by 1.4%

On Thursday, U.S. Department of Labor report that, the U.S. Initial Jobless Claims rose 1,186K in the week ending August 01, down 249K from the previous week's revised level of 1,435K.

Moving ahead today, the important events to watch:

US Non-farm payrolls – 12.30 GMT

US unemployment rate – 12.30 GMT

CANADA employment report – 12.30 GMT

Coronavirus update:

The number of people infected with the coronavirus across the world surpassed 19.1 million, of which at least 715 thousand people have died, according to data released by the Johns Hopkins University. Russian authorities have reported 5,241 new Covid-19 infections, pushing the country’s national tally to 877,135. Hong Kong confirmed 89 new cases of Covid-19 in the city on Friday, bringing its total number of confirmed cases to 3,939.

Technical Outlook

It’s a big day for the yellow metal, at the time of writing the gold price trading below $1960 ahead of US job data.


The important levels to watch for today: Support- 2025 and 2010 Resistance- 2070 and 2090.

EUR/USD: The currency pair retreated lower after the pair found sellers above 1.1900 level.


The important levels to watch for today: Support- 1.1800 and 1.1730 Resistance- 1.1880 and 1.1915.

Quote of the day: Building wealth is a marathon, not a spirit. Discipline is the key ingredient.

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