Gold hits 11-week high after NFP miss

If you never want to be criticized, for goodness’ sake don’t do anything new.” – Jeff Bezos

 

 

HEADLINES

 

 

• Dollar weakens after U.S. payrolls miss
• USD/JPY drops below 110.00 on broad USD weakness
• Gold climbs for the week to highest in 11 weeks after downbeat August U.S. jobs data
• Oil ends lower on weaker-than-expected U.S. jobs data, but posts a weekly gain on slow Gulf output recovery
• Dow falls after big jobs report miss, tech stock gains limit losses
• Bloomberg senior strategist calls Bitcoin a global reserve asset on the path to $100K
• Not looking for a change in policy at next week's BoC meeting – TD Securities

 

 

FOREX

 

 

Dollar weakens after U.S. payrolls miss

 

The dollar weakened further against a basket of major currencies on Friday after a much softer than expected U.S. payrolls report that is likely to keep the Federal Reserve on hold in scaling back its massive stimulus measures.

The dollar has been subdued on uncertainty over the path of Fed policy. Fed chair Jerome Powell said last Friday that while tapering of its stimulus could begin this year if job growth continues, the central bank was in no hurry to do so.

 

USD/JPY drops below 110.00 on broad USD weakness

 

The renewed USD weakness following the dismal US August jobs report forced USD/JPY to turn south on Friday. The US Bureau of Labor Statistics reported that Nonfarm Payrolls (NFP) increased by 235,000 in August. This reading fell short of the market expectation of 750,000 and caused the US Dollar Index (DXY) to drop below 92.00 for the first time since early August

 

 

COMMODITIES

 

 

Gold climbs for the week to highest in 11 weeks after downbeat August U.S. jobs data

 

Gold futures climbed on Friday, with data showing a lower-than-expected increase in new U.S. jobs in August prompting prices for the precious metal to notch a gain for the week and mark their highest finish since mid-June. The disappointment in the nonfarm payrolls data “can not be underestimated and will give the [Federal Reserve] additional rationale to push back an effort to taper asset purchases.”

 

Oil ends lower on weaker-than-expected U.S. jobs data, but posts a weekly gain on slow Gulf output recovery

 

Oil futures ended lower on Friday, on the back of a smaller-than-expected gains in U.S. nonfarm payrolls in August, but a slow post-hurricane recovery in energy operations at the Gulf of Mexico contributed to a gain in prices for the week.

 

 

STOCKS

 

 

Dow falls after big jobs report miss, tech stock gains limit losses

 

The Dow Jones Industrial Average retreated on Friday and the S&P 500 slipped from a record high after the August jobs report came in short of expectations, showing the impact of the delta-fueled Covid resurgence. Modest gains for major tech stocks including Apple and Nvidia supported the market indexes. Home builder stocks including Lennar and PulteGroup were under pressure, along with cruise stocks.

 

 

CRYPTO

 

 

Bloomberg senior strategist calls Bitcoin a global reserve asset on the path to $100K

 

Bloomberg’s senior commodity strategist Mike McGlone has doubled down on call for six-figure Bitcoin (BTC), arguing that the first-born cryptocurrency is well on its way to becoming a global reserve asset that complements the United States dollar. The September edition of Bloomberg’s Crypto Outlook called $100,000 BTC and $5,000 Ether (ETH) the “path of least resistance” after the two assets survived a more than 50% correction through the summer.

 

 

ANALYSIS

 

 

Not looking for a change in policy at next week's BoC meeting – TD Securities

 

"The Bank will have to acknowledge the outlook has weakened after Q2 GDP, but we do not expect it will move from its current timeline for the output gap to close in H2 2022. Recent strength in CPI also supports maintaining the status quo, even if the BoC reiterates that temporary factors are driving inflation."

 

 

CHART

 

 

XAU/USD – 4 Hour Candlesticks

Source: GKFX Prime Metatrader 4

XAU/USD is testing 1830 resistance formed by the mid-July to early august peaks. The upwards momentum since the flash crash suggests a breakout. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/world/asia-pacific/dollar-weakens-after-us-payrolls-miss-2021-09-03/
https://www.fxstreet.com/news/usd-jpy-drops-below-11000-on-broad-usd-weakness-202109031317
https://www.marketwatch.com/story/gold-futures-rise-early-friday-but-on-pace-for-weekly-drop-11630670686
https://www.marketwatch.com/story/oil-futures-see-modest-rise-as-investors-watch-for-u-s-jobs-report-11630669582
https://cointelegraph.com/news/bloomberg-senior-strategist-calls-bitcoin-a-global-reserve-asset-on-the-path-to-100k