Top 5 Things to Know Before You Start Trading
This Monday the USD is trading higher following Friday’s NFP report, while the GBP is lower. Oil and gold hold back on gains.
1 – USD Higher Following Upbeat NFP
US labor markets remained solid as Friday’s US Non-Farm employment increased by 209k, well beyond expectations of 182k. The unemployment rate stayed at a 10 year low of 4.3%. US Dollar (USD) had a strong rebound and the US Dollar Index jumped over 100 points during the session. US equity markets continued a bullish trend. Dow Jones made a new record high of 22092. Although we had a better NFP figure, markets are still focusing on the fiscal policy of US President Donald Trump and future Federal Reserve (Fed) monetary policy changes.
2 – GBP Lower Following NFP Report
Sterling (GBP) fell on Friday and is poised to post its biggest two-day decline in seven weeks after a strong U.S. July NFP report prompted investors to cut some of their heavy bets against the USD versus a basket of currencies. The GBP fell 0.7 percent after the data to $1.3038. Over the past two days, it has declined 1.4 percent, its biggest two-day losing streak since June, 12th according to Thomson Reuters data.
3 – Oil Prices Remain Below Benchmark
Crude Oil prices are still hovering below the benchmark of $50 a barrel. Ongoing discussion of production cuts will be the major factors to influence the Oil Price. U.S. crude slipped 0.3 percent to $49.43 a barrel, after rising 1.1 percent on Friday.
4 – Gold Hold Back on Losses
Gold steadied as the USD surrendered some of its gains, but it remained under pressure. The precious metal was marginally lower at $1,257.27 an ounce, extending Friday’s 0.8 percent loss.
5 -Eventful Week Ahead
Key events of the week: US Crude Oil Inventories on Wednesday, The Reserve Bank of New Zealand (RBNZ) will release cash rate on Thursday. The U.S. Consumer Price Index (CPI) will be released on Friday.