The US nonfarm payrolls report is the highlight of today’s economic calendar. US Bureau of Labor Statistics will release the NFP at 13:30 GMT. The market participants are expecting 71k jobs added in December and the unemployment rate is expected to rise by 0.1% to 6.8%.
Wall Street ended higher on Thursday lifted by the democrat victory in the US presidential election strengthened hopes for a larger stimulus package. The US stocks also received additional support from the latest strong US economic data.
Crude oil price jumped again on Friday for the third straight session supported by the better-than-expected US oil inventory data and Saudi Arabia's decision to cut output by 1 million barrels per day.
In the currency market, the EURO continuously trading weaker for the second consecutive day ahead of NFP report. If the NFP disappointment could increase the safe-haven outflows toward the USD and pull the pair below the 1.2200 marks.
The safe-haven metal trading lower on Friday after the promising developments toward a coronavirus vaccine sparked hopes for a swifter economic recovery. At the time of writing, the precious metal trading below 1900.
On the data front, the US ISM Services PMI reported an increase to 57.2 in December, compared to the forecast of 54.5.
Moving ahead today, the important events to watch:
US – Employment report: GMT – 13.30
Canada – Employment report: GMT – 13.30
Worldwide, more than 87.5 million people have been confirmed infected and more than 1.88 million have died. The United States has reported 21.3 million confirmed cases and has had more than 362,000 deaths from COVID-19, the highest totals in the world. While Japanese Prime Minister Yoshihide Suga declared a state of emergency in Tokyo and three other areas on Thursday due to a rise in COVID-19 infections.
Dollar Index: US dollar rebounded back to near the weekly high. Now the future direction of USD will depend on NFP figures which will release later today.
The important levels to watch for today: Support- 89.60 and 89.40 Resistance- 90.00 and 90.35.
GOLD: The gold price break below the key support of $1900 on Friday and overall, the movement of gold remained bearish from Wednesday.
The important levels to watch for today: Support- 1882 and 1870 Resistance- 1900 and 1914.
Quote of the day: “Success is not final; failure is not fatal: It is the courage to continue that counts.” - Winston S. Churchill.
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