his morning we see the impact of yesterday’s FOMC (Federal Open Market Committee) Minutes and the anticipation for tomorrow’s Nonfarm Payroll (NFP) report.
1 – USD Steadies Following FOMC Minutes
The US dollar steadied after the Federal Reserve’s policy meeting minutes, released yesterday, took the wind out of its advance, with the market awaiting comments by central bankers and US data for its next moves.
2 – Heads Up for US Employment Report
Later in the day, US data will be released including the ADP employment report, ISM non-manufacturing PMI and the initial jobless claims. Tomorrow, Friday we will see the release of the all-important NFP Report. A strong payrolls report is probably needed to push EUR/USD below the 1.13 support level.
3 – Oil Prices Lower
Oil and Brent had their steepest declines yesterday. Oil prices plunged 4% on Wednesday as more evidence indicated that OPEC (Organization of Petroleum Exporting Countries) exports rose last month. WTI (West Texas Intermediate) prices had risen nearly 11% from a 10-month closing low over the course of eight sessions.
4 – Low Oil Prices Dampen Indices
Overnight, Asian equities traded with modest losses, despite a flat (S&P 500) to a higher (Nasdaq)close in the US. Signs of division within the Fed yesterday setback oil prices and ongoing geopolitical uncertainty on North-Korea is causing some investors caution.
5 – Gold Extends Losses
USD/JPY rose 0.1% to 113.35 per dollar, after falling as low as 112.90. The GBP is stable at 1.2925. Gold is once again under pressure after having briefly rebounded to $1229, the yellow metal is trading at $1223.
