Global markets are extremely volatile on Friday trading ahead of the US jobs report, which is set to be released at 12:30 GMT. Leading indicators point to a weak number, especially after a poor ADP employment report and weak ISM PMI data were released this week. The ADP employment report came in below expectations, with just 247,000 jobs added in April. The market participants expect that the US economy added 391k jobs in April while the Unemployment Rate may have eased to 3.5% from 3.6% prior.
US futures trades flat on a daily basis after the previous session's sell-off as investors remained cautious ahead of the highly anticipated US NFP data.
On the earnings front, Draft Kings and Under Armour are amongst those reporting the last quarter's financial results today.
Crude oil futures are on track to end the week on a positive note. Both WTI and Brent oil futures reached a fresh weekly high on Thursday boosted by the recent OPEC meeting outcome. On Thursday, OPEC+ ministerial meeting agrees to increase production by 432kbpd in June.
In the currency market, the dollar index, which tracks the U.S. currency against six major peers slightly retreated from the multi-year highs. The greenback currently faces an important resistance level at 94.10. Meanwhile, the Euro found few buyers again below 1.05 after ECB’s Villeroy suggested that the bank’s policy rates could return to the positive territory by the end of the year.
The safe-haven metal struggling to find upside momentum. At the time of writing, the metal trades were above $1880. The data to come later today on US payroll numbers could prove key to determining the next moves.
On the data front, the Labor Department reported the latest US jobless claims data. The data showed that applications for the week ended April 30 climbed to 200,000 from an upwardly revised 181,000 a week earlier.
Moving ahead today, the important events to watch:
US – Non-farm payrolls: GMT – 12.30
Canada – Employment report: GMT – 12.30
Worldwide, more than 514 million people have been confirmed infected and more than 6.23 million have died. The United States has confirmed over 81 million cases and has had more than 993,000 deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: Technically the overall trend still looks bearish, and the next immediate support is at 1.0470 then 1.0440. On the upper side, in case the pair manages to settle above 1.0640, it will gain upside momentum and head towards the next resistance level at 1.0690 and 1.0730.
The important levels to watch for today: Support- 1.0500 and 1.0470 Resistance- 1.0600 and 1.0640.
GOLD: The gold price slightly rebounded from the early session lows; the key support remains below the previous session low of $1860. On the flip side, the immediate resistance is located above $1905, a break above this level will confirm a possible move to $1920.
The important levels to watch for today: Support- 1872 and 1860 Resistance- 1896 and 1920.
Quote of the day - “A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” — Suze Orman.