Daily Market Review — 11/07/2016

Daily Market Review — 11/07/2016

Friday’s NFP findings will continue to influence the markets today

Forex

EUR/USD

EURUSD

The pair traded with mixed results during Friday’s session thanks to the highly anticipated NFP report. For the most part the results (287K vs 175K) soundly beat expectations, however the unemployment rate unexpectedly rose to 4.9% as opposed to 4.8. Additionally, although average wages increase by 0.1%, it ultimately failed to meet expectations (0.2%).

Today’s speech by FOMC Member Esther George along with the publication of the US Labor Market Conditions Index can potentially affect the pair. Both events are scheduled for 14:00 GMT.

Resistance: 1.1100, 1.1185, 1.1242
Support: 1.1023, 1.0972, 1.0914

USD/CAD

USDCAD

The pair grew during Friday’s trading session, with a better than expected NFP report being the main catalyst. Both the US and Canada reported their monthly jobs reports, with the figures producing mixed results. For example the unemployment rate in Canada fell to 6.8% (forecast was 7%), while in the US it grew (4.9% vs 4.8%). However, a -0.7K Canadian Employment Change severely hurt the CAD.  Furthermore, oil prices fell substantially, thereby putting even more pressure on the Canadian currency. Today’s trading dynamics will predominately depend on the Canadian Housing Starts scheduled for 12:15 GMT.

Resistance: 1.3065, 1.3097, 1.3132
Support: 1.3016, 1.2964, 1.2914

 

Stock Market

NASDAQ Futures

NASDAQ

Major US stock indexes rose last Friday, aided by a superb NFP report, which was an eight-month high. Such findings strongly indicate that the US economy is growing.

Today is the start of the new earnings season, with Alcoa being the first to present its quarterly report after the markets close.

Resistance: 4544.97, 4563.21, 4581.45
Support: 4512.15, 4193.14, 4477.62

 

Commodities

GOLD

Gold

Gold fell sharply on Friday thanks a stunningly better than anticipated NFP report. It will be interesting to see how this plays out in the long term as the Fed indicated that a rate hike is currently off the table, with the Brexit being the primary concern.  Friday’s data on the US labor market will still influence gold prices.

Resistance: 1375.26, 1387.14, 1400.46
Support: 1350.49, 1335.50, 1315.48

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