Market Analysis

Dollar slightly rises ahead of US jobs data release

FOREX

The US dollar is recording modest gains against other major currencies, on a day that promises to offer new important clues for foreign exchange traders. The release of US jobs data later today is seen as a key moment. It can either offer vindication to the Federal Reserves’s ongoing drive to control inflation through aggressive rate hikes, or highlight the downside of the policy. Analysts expect the number of new jobs created during July in the US to be in the region of 250,000, which if confirmed represents a drop in the pace of job creation. If actual figures disappoint, revealing an even more pronounced drop in the pace of job creation than expected, chances of a dovish pivot by the Fed will increase, creating scope for dollar weakness.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

EUROPEAN SHARES 
Most European shares continued to climb on Friday, following the Asian trend, while US futures also point to a firmer opening ahead of the last trading session of the week. Corporate earnings, especially from the tech sector, are continuing to supporting market sentiment and appetite for riskier assets in August, as investors seize the occasion brought by cheaper stock prices following this year’s sell-off to increase their exposure to these markets. Even if this wind of relief continues to blow so far, the current rally on stocks shouldn’t lead stock prices to new record highs. The overall market environment, still under the threat of higher borrowing costs, economic slowdown and rising geopolitical tensions, remains bearish for stocks. Investor attention is likely to remain on macro data today with the US NFP data for July where a decrease from 372K to 250K job creation is widely expected.

Pierre Veyret– Technical analyst, ActivTrades

Source: ActivTrader

 

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