US Stock Futures Extend Upside Rally Following Solid Jobs Data

Equities

Major US stock index futures added to previous gains following strong job figures, which lifted risk appetite. The data showed that the US economy created 4.8 million jobs in June, restoring jobs lost during the lockdown caused by coronavirus outbreak. However, the gains were capped by the rising coronavirus cases. The new confirmed COVID19 cases in the US logged a record single-day jump of 50600. Investors are monitoring the developments closely and whether they could lead to another lockdown. The Dow Jones Industrial Average futures rose to 25876, the S&P500 futures rallied to 3138, and Nasdaq futures advanced to another record high of 10421.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, rebounded to 97.32 on upbeat economic data. The US jobs report showed that the US economy created 4.8 million jobs in June, and the unemployment rate fell to 11.1%, signaling that the economy is quickly recovering, which would abort plans of further monetary stimulus. On the other hand, the rising coronavirus cases continued to support the flow towards safer currencies. The EURUSD eased to $1.1224, the GBPUSD fell to 1.2437, and the AUDUSD held steady near $0.6913.

Metals

Gold prices continued to hover near their highest levels since 2012, as surging coronavirus cases limited optimism from solid US jobs data. The United States scored a record single-day rise in coronavirus cases, raising investors’ woes over another lockdown. The price of a gold ounce rose to $1777, the price of a silver ounce held steady near $18, while palladium futures fell to $1895.l

Oil

Oil prices settled in a tight trading range awaiting fresh fundamental drivers. The solid economic figures are supporting the prospects of rapid and strong economic recovery, but the soaring coronavirus cases are raising the chances of another lockdown. The West Texas Intermediate crude August delivery eased to $40.05, and Brent Blend September delivery held steady near $42.60.

Major Economic Events

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.COM. 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.