Dollar Stays Subdued Amid Mixed Batch Of Economic Data

Trading 02 nov 2019 Commentaire »

The U.S. dollar stayed largely subdued on Friday, reacting to a mixed batch of economic data and mild optimism over the U.S. and China reaching an agreement to sign an interim trade deal sometime this month.

The Labor Department said non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.

The report also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively.

Despite the stronger than expected job growth, the report said the unemployment rate inched up to 3.6% in October from 3.5% in September. The uptick matched economist estimates.

Meanwhile, a report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of October.

The ISM said its purchasing managers index crept up 48.3 in October from 47.8 in September, although a reading below 50 still indicates a contraction in manufacturing activity. Economists had expected the index to rise to 48.9.

In the previous month, the index fell to its lowest level since hitting 46.3 in June of 2009, the last month of the Great Recession.

The dollar index, which was up at 97.45 before the release of the latest batch of U.S. economic data, retreated soon after the release and spent the rest of the session in negative territory.

It was last seen at 97.22, down 0.13% from previous close of 97.16.

Against the Euro, the dollar was down marginally at 1.1162.

The Pound Sterling was down marginally at $1.2938, after swinging between $1.2901 and $1.2972.

UK manufacturing activity decreased at the slowest pace in six months in October, remaining constrained by ongoing political and economic uncertainties as output, new orders and employment continued to fall, survey data from IHS Markit showed on Friday.

The Japanese Yen was down at 108.20 a dollar, compared to previous close of 108.02 a dollar.

The dollar was down against the loonie and Swiss franc with the respective pairs quoting at 1.3142 and 0.9856, respectively, by late afternoon.

Data from Markit said the IHS Markit Canada Manufacturing Purchasing Managers' index, a measure of manufacturing business conditions, rose to a seasonally adjusted 51.2 in October, its highest level since February. The index stood at 51.0 in September.

Swiss consumer prices declined for the first time since late 2016 in October, the Federal Statistical Office reported Friday.

Another report showed that retail sales in Switzerland recovered in September on non-food product turnover.

Against the Aussie, the dollar was down at 0.6913.


The material has been provided by InstaForex Company - www.instaforex.com

Treasuries Give Back Ground Following Better Than Expected Jobs Data

Trading 02 nov 2019 Commentaire »

After moving notably higher over the course of the two previous sessions, treasuries gave back some ground during trading on Friday.

Bond prices saw some early volatility but slid firmly into negative territory as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.7 basis points to 1.728 percent.

The pullback by treasuries came as much stronger than expected U.S. jobs data washed away recent concerns about the economic outlook.

The Labor Department said non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.

The report also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively.

With the upward revisions, employment gains in September and August combined were 95,000 more than previously reported.

"The upshot is that the three-month average gain is now 175,000, which is easily enough to outpace population growth," said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, "That is in stark contrast with much of the recent survey evidence, which had pointed to a sharp slowdown in employment growth."

Despite the stronger than expected job growth, the report said the unemployment rate inched up to 3.6 percent in October from 3.5 percent in September. The uptick matched economist estimates.

The unemployment rate crept up from the nearly 50-year low hit in the previous month as a 325-person jump in the size of the labor force more than offset a 241,000-person increase in the household survey measure of employment.

Meanwhile, the Institute for Supply Management released a separate report showing a continued contraction in U.S. manufacturing activity in the month of October.

The ISM said its purchasing managers index crept up 48.3 in October from 47.8 in September, although a reading below 50 still indicates a contraction in manufacturing activity. Economists had expected the index to rise to 48.9.

In the previous month, the index fell to its lowest level since hitting 46.3 in June of 2009, the last month of the Great Recession.

"Comments from the panel reflect an improvement from the prior month, but sentiment remains more cautious than optimistic," said Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee. "Global trade remains the most significant cross-industry issue."

Next week's trading may be impacted by reaction to reports on the U.S trade deficit, service sector activity, labor productivity and consumer sentiment.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auctions of three-year and ten-year notes and thirty-year bonds.


The material has been provided by InstaForex Company - www.instaforex.com

Oil Futures End Sharply Higher On Strong Economic Data

Trading 02 nov 2019 Commentaire »

Crude oil prices rose sharply on Friday as buoyant U.S. jobs data and stronger-than-expected data on Chinese manufacturing activity helped ease concerns about energy demand outlook.

Some positive news on the trade front too contributed to oil's sharp uptick.

West Texas Intermediate Crude oil futures for December ended up $2.02, or about 3.7%, at $56.20 a barrel.

Brent Crude futures gained $2.12, or 3.6%, at $61.74 a barrel.

On Thursday, WTI crude oil futures for December ended down $0.88, or about 1.6%, at $54.18 a barrel.

For the week, WTI crude oil futures shed about 0.9%.

According to Baker Hughes, the rig count dropped to 691 in the week to 1 November 2019, down 5 from previous week's count of 696.

Data from the U.S. Labor Department said non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.

The report also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively.

Despite the stronger than expected job growth, the report said the unemployment rate inched up to 3.6% in October from 3.5% in September. The uptick matched economist estimates.

Meanwhile, a report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of October.

In China, the manufacturing sector expanded at the fastest pace since early 2017 in October, data from IHS Markit showed Friday.

The manufacturing Purchasing Managers' Index rose to 51.7 from 51.4 in September. A score above 50 indicates expansion.

On the trade front, a report in China's Xinhua News Agency said the U.S. and China have "reached consensus on principles." Earlier, U.S. Commerce Secretary Wilbur Ross reportedly said the interim trade pact with China appeared in good shape.


The material has been provided by InstaForex Company - www.instaforex.com

Gold Futures Settle Lower On Strong Jobs Data

Trading 02 nov 2019 Commentaire »

Gold prices edged lower on Friday after data from Labor Department showed a stronger-than-expected growth in U.S. jobs in the month of October.

The encouraging jobs data helped ease concerns about the economy and raise speculation that the Fed may pause rate hikes for now.

The dollar index climbed to 97.45 after the release of the jobs report, but retreated slipped to 97.16 before edging up to 97.25, down by about 0.1% from previous close.

Gold futures for December ended down $3.40, or about 0.2%, at $1,511.40 an ounce, off the day's high of $1,519.00 an ounce.

On Thursday, gold futures for December ended up $18.10, or 1.2%, at $1,514.80 an ounce.

For the week, gold futures gained about 0.4%.

Silver futures for December ended down $0.015, at $18.052 an ounce, while Copper futures for December settled at $2.6530 per pound, gaining $0.0150 in the session.

On the economic front, the Labor Department said non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.

The report also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively.

Despite the stronger than expected job growth, the report said the unemployment rate inched up to 3.6% in October from 3.5% in September. The uptick matched economist estimates.

Meanwhile, a report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of October.

The ISM said its purchasing managers index crept up 48.3 in October from 47.8 in September, although a reading below 50 still indicates a contraction in manufacturing activity. Economists had expected the index to rise to 48.9.

In the previous month, the index fell to its lowest level since hitting 46.3 in June of 2009, the last month of the Great Recession.


The material has been provided by InstaForex Company - www.instaforex.com