Analysts looking for US employment lift
This morning we have the release of one of the most important economic items for the month - US Non Farm Payrolls. Analysts are expecting good news with a consensus estimate of +97,000 jobs being added. It´s the actual number, or more importantly the reaction to the number that actually matters though, which is why markets are typically quiet this morning.
There is a negative bias out there today as traders are unimpressed by the coordinated easing activities from various central banks yesterday. The dollar index is building on yesterday´s strong gains as the euro struggles again this morning.
Elsewhere, the main risk on/risk off barometer pair, the AUD/JPY is off by 0.38% with the AUD/USD off by 0.29%.
The EUR/JPY is continuing to struggle, with the pair down by 0.24% in early trading.
Gold continues to struggle to make much progress above the $1600 level as the dollar index rebounds. We start the day with UK PPI data at 09.30 with drop of -2.1% expected. German Industrial production follows at 11.00. From 13.30 we have the main event - US Non Farm Employment changes and the US unemployment rate. Canadian employment data is released at the same time.
Gold rallied off the lows in June, with support building around the $1560 region. The precious metal has shrugged off the worst of its over sold conditions, but has certainly not swung back to an over bought status quo. The could be some more upside to come if demand for the US dollar subside. With the Eurozone politicians appearing to finally get the message, there is hope that the worst case scenario could be averted there (though doubts still remain around underlying growth).
A good way to play this might be a HIGHER trade on BetOnMarkets.com on gold predicting that gold closes above $1650 in 63 days time for a potential return of 194%. Gold is found via the commodities menu.
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