Spreadex Market Update
Dull non-farm data can’t deter dollar bulls
Non-farm was slightly lower than expected at 215k, a solid is not particularly number but one that brought with it upward revisions for May and June. The unemployment rate, meanwhile, remained strong at 5.3% whilst wage growth matched forecasts at 0.2%.
The figures themselves may not have been too thrilling, but they appear to add to the hawkish case, especially since the jobs created are largely in full-time employment, providing no real obstacle for the long-rumoured September rate-hike. The dollar bulls certainly took it this way, with the greenback surging against the euro whilst hitting a 3 week high against the pound and a 5 month high against the Swiss franc. The Dow Jones, meanwhile, slipped to predictable losses, but losses not as extreme as would have greeted a more impressive non-farm figure.
With all the attention on the underwhelming wave of US jobs data, the European markets were left to their own limp devices as the week wound down. Despite a fairly robust recovery from BP, Shell and Vedanta Resources, among other oil and mining stocks, the general dismal nature of the commodities themselves, with copper cementing its 6 year lows, appeared to weigh on investors’ appetite for the FTSE.
The DAX and CAC settled into some notable, if not extreme, losses this morning, and haven’t been able to shake them since. Still, both should overall end the week in the green after a Greece-free calmness came over the region. That could change if (when?) more details come out about the progress and/or content of a third bailout, be it that a deal will be in place by the August 20th ECB repayment, or that another bridging loan, as Wolfgang Schauble seemed to suggest today, is needed.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
