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%.
The Bank of England kept interest rates at 0.1% and to keep its asset purchasing facility at £745bn for August. The Central bank said the unemployment will jump, with the rate at 7.5% at the end of 2020, before gradually declining from the start of next year and inflation is expected to fall further below the 2% target.
The gold price hit an all-time high of $2038 on Wednesday during the European session. The recent upside rally supported by a weaker dollar, escalating tensions between the US and China and a large explosion in the Lebanese capital, Beirut. The safe-haven metal surged more than 30% this year boosted by lower interest rates and rising coronavirus cases.
The Nasdaq climbed to a record high on Monday boosted by hopes for a fresh US fiscal stimulus package and tech shares rally. The Nasdaq Composite surged more than 1.5% to 10,902.80, beating its previous record high close on July 20. Microsoft jumped 5.6% on Monday after it confirmed that it is in talks to buy the US arm of TikTok. The Trump administration gave the company 45 days to make a deal before TikTok's US operations could be banned.
China’s manufacturing sector showed a further rebound in July to its strongest level since January 2011. On Monday, during the Asian session, the private survey showed The Caixin China Manufacturing PMI rose to 52.8 in July 2020 from 51.2 in the previous month, beating market consensus of 51.3. “Flare-ups of the epidemic in some regions did not hurt the improving trend of the manufacturing economy,” said Wang Zhe, senior economist at Caixin Insight Group.