Economic News Today

Market Overview

The US dollar experienced a slowdown after US Jobless claims were released yesterday. It has been reported to have jumped to the highest level since August, causing GOLD and US benchmark equity indexes to close higher. This sign of economic cooling and release of inflationary pressure is a good sign of a potential rate cut, thus the markets reacting the way it is. 

However, Oxford economist does denote that, “If the higher level of claims persists or if claims rise further, it would be a sign of a further loosening in labor market conditions. However, one week of data doesn't change our call for the (Federal Reserve) to keep interest rates at current levels until September.”

Official data released Friday showed the US economy added 175,000 jobs in April, below the 240,000 gain expected in a Bloomberg-compiled consensus. Meanwhile, we see the US Jobless rise by 22,000 to 231,000 in the week ended May 4 as claimed by the Department of Labor. 

$181.2B worth of buybacks, 16% more than last year, have been disclosed for the first quarter result leading to the uptick in the value of company shares. Company owners expect more free cash flow for this year for them to use.

WTI crude oil and RBOB gasoline closed up on a positive yesterday by 0.34% and 0.39% respectively. 

There is also an easing on the US Yields as further drops are witnessed. The Treasury sold $25 billion in 30-year bonds on Thursday, at a high yield of 4.635%, lower than where the yield on the screens was at the close of competitive bidding, indicating strong demand.

We actually had a pretty decent 30-year auction, all things considered,“ Rajappa said. ”This whole week has been pretty much about Treasury supply and corporate supply. It's a wait-and-see game until CPI next week.

Investors shift their attention toward England as the economy is priming for an earlier rate cut compared to the US as their CPI print shows a drop in core inflation. The ECB can move before the FED, too. 

GOLD -The GOLD has continued on its path as it broke away strongly from 2332.174, showing great bullish momentum. The market has also completed an SHS pattern, showing great volume for the uptick in price with the market taking its time to collect orders.

SILVER - As we expected, the SILVER went on a strong rise after the completion of the SHS pattern, breaking through 28.073. We look into a bullish Silver and a stable rise in prices.

DXY - The Dollar failed to reach structure at 105.840, showing weak volume toward the upside, and quickly dropped to fill orders created by the gap. We expect the Dollar to continue its downward momentum if it breaks beyond 105.071 and 104.607. We still have two major structures, before calling on a bearish dollar.

GBPUSD -The GBP has gained a bit of strength after it has gone back in the daily range with a W formation completed. We may expect prices to go beyond 1.25740 or stay still until next weeks trading session to collect orders.

AUDUSD -AUD correction has been completed and is seen to rise above 0.66145, a good indication for a continuation of its rise. Not to mention, there is good momentum and volume reflected in its action.

NZDUSD - The market has risen back to previous highs, testing the markets capacity to break above it and continue toward the next structure. Current price structure and strength are positive toward a more bullish market.

EURUSD - The EUR has printed beautifully in the markets as strong momentum and volume came in, breaking the price above 1.07757. We may see the price reaching the daily trendline and test it before a continuation. There is also a bullish trendline formed in the higher timeframe.

USDJPY - The Yen on a natural weakness as reflected in the market. Its slow but steady uptick is done despite a positive print with its peers. However, there was weakness seen in the last couple of hours, printing at a negative but near the market open. From here, is there potential for the Yen to gain strength naturally against the dollar？ We have to wait and see how prices will react from here on out.

USDCHF - We see the market lose momentum on its upside tick and fail to reach the lower boundary of the channel. There is potential for the market to drop from here and show a strong movement out of 0.90054. Currently, we wait and see how the price will play out.

USDCAD - The market is steady on its tracks while the price dropped from the previous very aggressively, as seen in the market. We can expect the price to test again at 1.36052 and try to go beyond that level. We wait and see how the prices will continue to play from here on out.

REMINDER:

Today is the last trading day of the week. Exercise caution when trading and taking positions as prices may move more aggressively or relax and open during next week's trading session on a more aggressive note.