US stock futures climb to a fresh weekly high on Friday ahead of the US NFP report, due later during the early North American session. NFP measures employment levels in the United States that does not include farm workers, private household employees, or non-profits. The market participants are anticipating a gain of 700k jobs in August, the unemployment rate is expected to tick down to 5.7% in June lower than the prior month’s 5.8%.
Wall Street ended higher for the third consecutive day on Thursday boosted by strong US jobless claims numbers and IMF has upgraded its growth outlook for the US. IMF forecasting the 2021 US GDP to touch 7%, compared to the previous projection made in April for 4.6% growth.
Crude oil prices slightly reversed from the previous session highs after OPEC+ delayed its ministerial meeting until Friday to hold more talks on oil output policy. On Thursday, US crude futures jumped above $75 for the first time since October 2018. The oil prices received additional support after both EIA and API data showed the US, crude stockpiles fell much more than expected last week.
In the currency market, the US Dollar index trading above the previous month high on Friday, and the future direction of the USD will depend on NFP figures which will release later today. On the other hand, the British pound fell to a new weekly low of 1.3745 on Friday following the dovish comments from BoE Governor Andrew Bailey.
The Safe-haven metal trades steady despite strong US dollar supported by amid concerns over the spread of the Delta variant of COVID-19 across the world.
On the data front, the US released the latest jobless claims report and June ISM manufacturing data on Thursday. The US Initial jobless claims fell to 364,000 in the latest week, the lowest weekly figure since the middle of March 2020. The June ISM manufacturing PMI registered 60.6%, a decrease of a 0.6 percentage point from the May reading of 61.2%.
Worldwide, more than 182 million people have been confirmed infected and more than 3.93 million have died. The United States has confirmed over 33.64 million cases and has had more than 604,700 deaths from COVID-19, the highest totals in the world.
EURUSD: The currency pair extends slide to a fresh weekly low of 1.1821 during the European session. The next downside levels to watch 1.1800 and 1.1780 for today.
The important levels to watch for today: Support- 1.1800 and 1.1780 Resistance- 1.1880 and 1.1920.
GOLD: The yellow metal trading above $1780 on Friday. The near-term resistance is around $1790, any break over targets $1795/$1800. On the other side, the immediate support is at $1770 and any break will drag the gold to $1765/60 levels.
The important levels to watch for today: Support- 1770 and 1760 Resistance- 1790 and 1797.
Quote of the day: Your trading needs to boil down to rules, money management, and that is it – Michael Covel.