FOREX
The US dollar retreated from the multi-month maximums touched earlier in the week following the release of disappointing US employment data on Wednesday. The disappointing increase in private payrolls cooled expectations of further Fed interest rate hikes before the end of the year, driving a drop in treasury yields and dulling some of the greenback’s recent appeal. However, the data can is only part of a buildup that will culminate with tomorrow’s release of Non-farm payroll figures, and the dollar dominance of the last few weeks could easily be resumed should the numbers reflect more resilience in the US labor market.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European shares fluctuated shortly after the opening bell on Thursday, paring some of yesterday’s modest gains as global macro uncertainty lingers.
Market sentiment remains uncertain despite yesterday’s bullish reaction sparked by US benchmarks following softer data.
The sell-off in treasuries and monetary uncertainties in Europe and the US is a concern to investors still struggling to assess the short to mid-term outlook for riskier assets.
The STOXX-50 index traded sideways after traders witnessed another batch of uneven macro data from Germany, Spain, and France this morning, and all eyes are likely to be drawn towards the next US Initial Jobless claims report due later this afternoon and ahead of tomorrow’s highly awaited NFP data for September.
Technically speaking, even if the bearish trend seems to be losing momentum on EU shares, the STOXX-50 index still trades well below its bearish trendline, slowly dancing around the 4,100 pts mark.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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