Fundamental Analysis

Pound trading at higher ground – US NFP Data Ahead

Published on 2019-12-06 11:59 Share
US dollar

Friday’s session repeats the ordinary tune of inaction ahead of the US employment data. Also increasing the dormancy was a lack of major data/events amid no one believing in the United States diplomats even if they’re positive on the phase-one deal with China.

The US dollar remains under pressure as traders doubt the upbeat forecasts from today’s top-tier data.

The European currency fails to benefit much from the greenback’s weakness ahead of the Industrial Production data whereas Japanese yen (JPY) and Gold are mildly bid during the cautious tone. Pound bulls are catching a breath amid recent criticism of the United Kingdom’s Prime Minister.

While employment data from the US and Canada will be in the spotlight, German Industrial Production, the final day of the OPEC meeting and the US Michigan Consumer Sentiment Index will also be important to watch. Among them, German data might not get major attention, but OPEC could surely move the oil prices in a case of any surprise announcements.

Oil on Thursday witnessed two-way business and ended on a flat note, forming a Doji candle, despite OPEC and Russia have agreed to deepen production cuts. WTI crude is currently trading in the red at $58.27 per barrel, having hit a high of $59.10 in the overnight trade.

The state-owned oil giant Saudi Aramco set its IPO at 32 riyals ($8.52) per share, which is the top of its indicative range. The stocks will be listed on the Tadawul, Saudi Arabia’s local stock exchange.

Gold prices offer few moves despite staying below 50-day EMA, despite Trade bleak, political pessimism and weak USD favour the buyer. Nervous sentiment ahead of the key US data keeps the market player on the wait-and-watch mode.

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