The Bullet Report: Strong NFP Boosts USD | Gold on the Move

Posted On 08 Aug 2016

The Dollar was boosted on Friday as a result of a much better than expected NFP report which showed 255.000 jobs added in August compared to 180.000 forecasted. Besides, the core data of NFP, other indicators such as wage growth and the unemployment rate were also on the good side, easing fears that the US is slowing down especially after the dismal GDP numbers last week. There is no significant news today, however the rest of the week with feature Retail Sales data in the US. IF they also show growth, chances for a rate hike in 2016 will greatly increase.

Currencies: The USD gained across the board on Friday. EURUSD fell below 1.11 while the USD Index gained 1%. The upbeat data reignited speculation that the Federal Reserve will lift interest rates this year. Fed funds futures are currently pricing in a 15% chance of a rate hike by September. December odds were at around 44%, up from 33% ahead of the report. Overnight the biggest mover was USDJPY which rose to 102.20, a marginal 0.3%

Stocks: Signs the US economy is not slowing down, pushed shares to new record highs on Friday. The Dow Jones Industrial Average gained 191.48 or 1.04% to 18,543.53, while the NASDAQ added 54.87 or 1.06% to 5,221.12, soaring to a fresh record close for the first time in more than a year. The positive sentiment followed through in Asia overnight as the NKI is trading 1.89% higher.

Oil and Gold: Gold traded at a 1-week low after the NFP report as the increased chances of a rate hike caused a selloff in the yellow metal which is inversely correlated with the USD. Oil is relatively stable. Prices initially jumped higher after the NFP data, but prices started moving lower as the upbeat jobs report lifted the U.S. dollar to one-week highs against most of its major counterparts

The post The Bullet Report: Strong NFP Boosts USD | Gold on the Move appeared first on Forex.Info.

Source:: The Bullet Report: Strong NFP Boosts USD | Gold on the Move

About the Author

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. [space height="20"] Trade 300+ markets including currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! [space height="20"] Welcome to the exciting world of trading. Welcome to easyMarkets.