Stay informed with CA Markets’ daily market update, providing the latest trends and insights in Forex and CFD trading. Our comprehensive analysis and expert advice are designed to keep you informed and ahead in CFD trading. Whether you’re navigating currency pairs or exploring diverse asset classes, our updates offer valuable perspectives to optimize your trading strategies. Trust CA Markets to deliver timely market analysis that empowers your decisions and enhances your trading experience.
Market Recap:
Friday’s soft U.S. jobs report weighed on risk and drove losses in equities and bond yields to end the week. On Wall Street, the Nasdaq closed down by 2.4%, the S&P 500 by 1.8%, and the Dow Jones by 1.5%. U.S. 10-year yields fell 18bps to 3.76%, while crude oil prices dropped by 2.9% to $74.10 a barrel. The AUD/USD traded in a 0.6487/0.6547 range before closing the week at 0.65115.
During the London session, the Euro stayed strong, climbing to 1.0837. GBP/USD pushed to 1.2750 while the antipodes traded 10 points off previous highs. USD/JPY was steady around 149.00, and USD/CAD traded at 1.3885 ahead of payrolls.
The U.S. Non-Farm Payrolls for July increased by 114k, down from a negatively revised 179k and well below expectations of 175k. The unemployment rate rose by 0.2% to 4.3% against expectations of no change at 4.1%. Additionally, the participation rate unexpectedly rose by 0.1% to 62.7%. Average hourly earnings increased by 0.2% MoM and 3.6% YoY, both weaker than forecasts by 0.1%.
Following the data release, the USD weakened as U.S. yields moved sharply lower, with markets bringing forward the expected Fed easing path. The antipodeans rallied to respective highs of 0.6547 and 0.59845, while EUR/USD made highs above 1.0900 and GBP/USD moved up to 1.27325. USD/CAD fell to 1.3838 lows, and USD/JPY saw the biggest move, falling around 200 points to 147.02 lows.
Elsewhere, markets were firmly in risk-off mode as U.S. equity futures fell further ahead of the cash open, while European cash markets slipped further into the red. Crude oil fell to losses of more than 3%, while gold rallied to gains of more than 1%. The VIX moved higher, up more than 20% on the day.
Day Ahead:
A busy week lies ahead with the RBA’s monetary policy decision and the NZ employment report as local highlights.
The U.S. ISM Services Index for July will be released this evening. The index fell below consensus in June, dropping to 48.8 from 53.8 in May—its lowest reading since April 2022. The market expects an improvement for the July reading, with the index anticipated to rise above the critical 50 level.
The U.S. Senior Loan Officer Opinion Survey on Bank Lending Practices will also be published tonight. The survey results can provide insights into lending standards and the demand for credit, potentially impacting expectations for U.S. growth and monetary policy.
Despite the large moves elsewhere, the AUD/USD remained in a relatively tight 0.6487/0.6547 range on Friday. Demand is expected at 0.6460, while offering interest remains in the 0.6600/20 range.
Economic Data to Watch:
- AU – July Judo Bank PMIs
- JP – July Jibun Bank PMIs
- AU – July Melbourne Institute Inflation
- NZ – July ANZ Commodity Price Index
- CN – July Caixin PMIs
- EU – July HCOB PMIs
- UK – July New Car Registrations
- EU – August Sentix Investor Confidence
- UK – July S&P Global PMIs
- EU – June PPI
- US – July S&P Global PMIs
- US – July ISM Services Index
Disclaimer: The information provided in this daily market update is for informational purposes only and should not be considered as financial advice. Trading Forex and CFDs involves significant risk of loss and may not be suitable for all investors. Past performance is not indicative of future results. CA Markets does not guarantee the accuracy or completeness of the information provided, and we recommend consulting with a qualified financial advisor before making any trading decisions. Users are solely responsible for their own trading activities and decisions.
