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Dollar higher after U.S. job growth tops expectations

“An entrepreneur is someone who has a vision for something and a want to create.” — David Karp 

HEADLINES

  • Dollar higher after U.S. job growth tops expectations

  • Gold slips as solid jobs data spurs rate hike bets
  • Oil rises despite OPEC+ output hike plan; supply still tight
  • Wall St slides as solid jobs data supports rate hike bets
  • Exclusive: Elon Musk wants to cut 10% of Tesla jobs
  • GBP/USD: Failure to reclaim 1.26 may give the pound a more bearish feel – Scotiabank
  • EURUSD Short Term: Upside favored

 

 

FOREX

 

 

CURRENCIES

 

 

Dollar higher after U.S. job growth tops expectations

 

 

The U.S. dollar edged higher against a basket of currencies on Friday, after a better-than-expected U.S. employment report pointed to a tight labor market that could lead the Federal Reserve going with interest rate hikes.

The U.S. Dollar Currency Index, which tracks the greenback against six other major currencies, was 0.2% higher at 101.91, after rising as high as 102.19 following the jobs report.

 

 

COMMODITIES

 

 

Gold slips as solid jobs data spurs rate hike bets

 

 

Gold prices fell on Friday, pressured by a stronger dollar and as better-than-expected U.S. jobs data raised concerns of aggressive monetary policy tightening.

The dollar edged up 0.1%, while U.S. benchmark 10-year yields were close to the two-week high touched earlier in the session.

Gold prices are set to log a 0.2% gain for the week, with the metal hitting its highest since May 9 at $1,873.79 earlier in the session.

 

 

ENERGY

 

 

Oil rises despite OPEC+ output hike plan; supply still tight

 

 

Oil rose higher on Friday, supported by expectations that OPEC’s decision to increase production targets by slightly more than planned won’t much affect tight global supply and by rising demand as China eases Covid restrictions.

U.S. crude was heading for a sixth weekly gain on tight U.S. supply, which has prompted talk of fuel export curbs or a windfall tax on oil and gas producers.

Oil held gains after U.S. data showed employment increased more than expected in May, signs of a tight labor market.

 

 

STOCKS

 

 

Wall St slides as solid jobs data supports rate hike bets

 

 

U.S. stock indexes fell on Friday as a solid jobs report supported the view that the Federal Reserve would continue on its aggressive policy tightening path to cool decades-high inflation, with shares of Apple and Tesla weighing the most.

The Labor Department's closely watched report showed nonfarm payrolls rose by 390,000 jobs last month and wages grew, while the unemployment rate held steady at 3.6% - all signs of a tight labor market.

The S&P 500 posted one new 52-week high and 29 new lows, while the Nasdaq recorded 30 new highs and 112 new lows.

 

 

Exclusive: Elon Musk wants to cut 10% of Tesla jobs

 

 

Tesla (TSLA.O) CEO Elon Musk has a "super bad feeling" about the economy and needs to cut about 10% of staff at the electric carmaker, he said in an email to executives.

The message, sent on Thursday and titled "pause all hiring worldwide", came two days after the billionaire told staff to return to the workplace or leave, and adds to a growing chorus of warnings from business leaders about the risks of recession.

Tesla shares fell 9% in U.S. trade on Friday after the Reuters report. The tech-heavy Nasdaq (.IXIC) was down about 2%.

 

 

ANALYSIS

 

 

GBP/USD: Failure to reclaim 1.26 may give the pound a more bearish feel – Scotiabank 

 

 

“A failure to reclaim the 1.26 handle may give the GBP a more bearish feel to close out the week after it broke through its bullish trend from the mid-May lows on Tuesday.”

 Support is the mid-1.25s area followed by 1.2525 and the big figure” zone; Wed’s low of 1.2459 follows.”

“Resistance after the 1.26 figure area is 1.2630 and the mid-1.26s.”

 

 

CHART

 

 

EURUSD Short Term: Upside favored

 

 

Technical View: Long position above 1.0683. Target 1.0795. Conversely, break below 1.0683, to open 1.064.

 

 

Comments: The pair is expected to resume advance after correction.

 

 

Source: Trading Central 



 

CALENDAR

*Times in GMT

 

 

Source: FX Street Economic Calendar

Footnotes
https://www.cnbc.com/2022/06/03/forex-markets-dollar-us-jobs-data.html
https://www.cnbc.com/2022/06/03/gold-markets-dollar-federal-reserve-interest-rate.html
https://www.cnbc.com/2022/06/03/oil-markets-opec-russia.html
https://www.reuters.com/markets/europe/futures-slide-after-musks-warning-economy-2022-06-03/
https://www.reuters.com/technology/exclusive-musk-says-tesla-needs-cut-staff-by-10-pauses-all-hiring-2022-06-03
https://www.fxstreet.com/news/gbp-usd-failure-to-reclaim-126-may-give-the-pound-a-more-bearish-feel-scotiabank-202206031333

 

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