Markets Await the U.S. Non-Farm Payroll

USD

On Friday, the Greenback held steady vs. its major rivals as traders focused on renewed economic strength in the euro-zone. Meanwhile, market players are awaiting the upcoming U.S. nonfarm payrolls report for January, to get the latest evidence of the strength of the U.S. labor market. Nonfarm payrolls for January could hit 180k jobs after increasing 148k in December.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.27% at 88.72, holding above a three-year low of 88.429 touched one week ago.

EUR

The Single currency fell by 0.25% vs. the U.S. dollar, to settle at $1.2484.

GBP

The Sterling pound fell by 0.34%, to settle at $1.4219. No major reports are due from the UK today.

JPY

Against the JPY, the USD rose by 0.43%, to settle at ¥109.88. the JPY declined after a special bond purchase operation by the Bank of Japan to stop the rise in Japanese bond yields.

Gold

Earlier today, Gold prices settled high, as the Greenback remained weak ahead of a key U.S. employment report. Markets are awaiting Friday's non-farm payroll, for further indications on the strength of the U.S. job market. Gold Futures - Feb 18 (GCG8), rose by 0.14%, to settle at $1,349.80.

Oil

Early on Friday, Oil rose for a third day in a row after a survey showed strong compliance with output cuts by OPEC and non-OPEC countries, offsetting worries about rising the U.S. production. Crude Oil WTI Futures - Feb 18 (CLG8) rose as much as 0.30%, to settle at $ 66.00, and Brent Oil Futures - Mar 18 (LCOH8) was up by 0.01% at $69.66.

The most important economic events:

• USD Change in Non-farm Payrolls (JAN): (GMT 13:30) – Important – Forecast (180k) – Previous (148k).
• USD Unemployment Rate (JAN): (GMT 13:30) – Important – Forecast (4.1%) – Previous (4.1%).

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.