Currency market today was weighed down by renewed China slowdown concerns in Friday’s Asian trading after the Chinese Caixin manufacturing PMI contracted further and hit the lowest since February 2016. As a result, the optimism fuelled by the US-China trade progress waned. Meanwhile, the US dollar traded better bid, having consolidated the overnight rebound amid a risk-on rally in the US equities.
The Yen held steady against the Dollar, leaving the USD/JPY pair capped below the 109.00 handle, while the Pound is on the backfoot amid broad-based US dollar rebound and looming Brexit uncertainty.
Markets buckle up for an eventful and busy macro calendar for Friday’s European and NA session ahead, as the Eurozone flash CPI estimate, and the US payrolls data are likely to remain in the spotlight.
The final manufacturing PMI reports from across the Euro are economies will start dropping in from 08:15 GMT, and the manufacturing sector activity reports from Germany, Italy and Eurozone will be closely eyed for fresh hints on the bloc’s economic growth prospects. From the UK docket, the UK manufacturing PMI for January will be released at 09:30 GMT.
At 13:30 GMT, the US labour market report will be published, with the average hourly earnings data eagerly awaited for fresh dollar trades. The US consumer sentiment and ISM manufacturing PMI data releases at 15:00 GMT.
Oil prices held steady on Friday, as both crude benchmarks traded modestly flat, torn between hopes the United States and China could soon settle their trade disputes and new data raising fresh concerns over China's economic slowdown.
Gold has retreated from the nine-month highs of $1325, as the rates entered a phase of consolidation awaiting the highly-influential US payrolls and earnings data. The renewed risk-on trades seen on the global equities amid US-China trade optimism following some progress in trade talks between the US President Trump and Chinese Vice Premier Liu, may have pushed Gold prices away from the top. All eyes are on the key event of the day, the US payrolls, for the next direction.