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DAILY MARKET REPORT

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The US nonfarm payrolls report is the highlight of today’s economic calendar. The dollar is trading two weeks high against the main currency pairs and the NFP report due at 13:30 GMT today.

EQUITIES

U.S. and European stock markets reached record highs on Thursday after strong fourth-quarter earnings season and China’s move to halve additional tariffs on some U.S. goods in an effort to boost business confidence.

OIL
WTI crude will likely remain under heavy selling pressure as Russia blocked OPEC’s response to the coronavirus saying they need more time to evaluate the impact of the virus on the market.

CURRENCIES
The US dollar extended advance against the euro and the pound. Cable fell to 1.2920 on mounting worries that the Brexit negotiations would be tough. While the Australian dollar trading weaker below $0.67 after the Reserve Bank of Australia slashed growth forecasts in its quarterly economic outlook, blaming bushfires and the coronavirus.

GOLD
Gold prices were steady on Friday after two days of gains as equities lost ground, with the coronavirus that originated in China showing no signs of slowing down amid escalating fears of a broader impact on economic growth.

Economic Outlook

The euro dropped against the US dollar after the German production fell 3.5% on month to December versus 0.2% contraction expected by analysts and 1.2% expansion printed a month earlier. German exports grew 0.1% over the same month, less than 0.5% expected by analysts.

Today, the eyes will be on the U.S.NFP figures along with the Canadian Job data, and both are due at the same time. In the US, expectations are for a solid jobs report, taking a very positive lead from the stellar ADP report earlier this week. In terms of average earnings, it is also expected to see an improvement.

Technical Outlook

AUD/USD: Aussie back to 0.67 ahead of the NFP report. The pair surged to 0.6770 at the starting of the week but lost the momentum after weak Retail sales data. We may see another bullish move if the pair hold previous support.

Gold: The yellow metal trading steady on Friday. Overall the trend looks bullish for today; any break above $1570 will open $1580.

Quote of the day: The best traders have no ego. You have to swallow your pride and get out of the losses-  

 

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