Friday’s session carries the late-Thursday moves, triggered through the trade war escalation, as the US President Donald Trump stands ready to “tax the hell out of China" unless they agree for a trade deal. Adding to the pessimism was North Korea’s third round of missile test in a week’s time and the White House notice of the President Trump’s EU trade term announcement at 17:45 GMT on Friday.
USD/JPY holds its stand as a winner while Gold stands on the other extreme amid worries emanating from China, one of the world’s largest bullion user. Moving on, the GBP/USD extended its downpour as UK lawmakers continue preparing for a no-deal Brexit while EUR/USD retreats as markets prepare for Eurozone Retail Sales, US employment data.
US Non-Farm Payrolls are set to provide a fresh direction after markets digested the Fed decision. Low expectations may lead to a positive surprise. The US dollar is well-positioned into the release.
It’s the US jobs report day and hence nothing matters more than the Nonfarm Payrolls (NFP) up for publishing at 12:30 GMT. However, Eurozone Retail Sales for June can offer intermediate moves. Additionally, the US Michigan Consumer Sentiment Index and Factory Orders could also entertain traders.
Having witnessed two months of volatile employment numbers from the US, the NFP are returning to the long-term averages with 164K forecast. Also, the Average Hourly Earnings (YoY) can increase to 3.2% from 3.1% while no change is expected from the Unemployment Rate of 3.7%.
Oil prices rebounded on Friday after plunging more than 7% on U.S. Donald Trumps’ overnight tweet for more tariffs on Chinese goods. Oil prices were already down more than 3% before Trump’s announcement.
Gold struggles to hold latest gains despite trade and political tension. Donald Trump’s surprise announcement of 10% tariffs on China’s $300 billion worth of goods provided ample ammunition to the safe-havens while also dragging the US treasury yields down to multi-month low.