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2021-03-05 18:14:45 The US added 379K new jobs in February, almost twice as many as expected, after a 166k gain a month earlier (revised from 49k), new monthly report said.

At the same time, wages continue to rise, which is also a positive factor. Along with the increase in employment, the wage growth rate tends to tilt downward as less-skilled workers (laid off at the start of the pandemic) got jobs. But this isn't the case yet. So far, wages are going up along with unemployment. Jobs soaring along with wages is a very pro-inflation factor.

On the macroeconomic side, today's report is unequivocally healthy and important, as it has the potential to restore confidence in the economic recovery. This report is unlikely to stop the rise in long-term bond yields, but it might stop the sell-off in risky assets, including equities, commodities and metals. Increased demand for risk could curb the dollar rally that has become particularly extensive over the past week. Open / Comment

2021-03-05 12:00:30 Yesterday was another day of falls with Nasdaq down more than 2% and much more modest losses for the Dow Jones (-1.1%) and S&P500 (-1.3%) as US long-term government bond yields continue to climb.

Much of what is happening in the market right now is preparation by the big players for a new wave of US government bond auctions. Most likely, the Treasury will place longer-dated bonds to spread the debt burden. The expected increase in the supply of these securities reduces the price of all issued bonds.

The actions of the Fed could also disrupt the natural course of events with next meeting scheduled for the March 17th.

https://fxpro.news/daily-economic-events/market-sell-off-to-last-until-us-support-package-20210305/ Open / Comment

2021-03-05 09:59:35 #WaveAnalysis

EURCHF broke long-term resistance level 1.1055

• Likely to rise to resistance level 1.1200

https://fxpro.news/market-snapshots/eurchf-wave-analysis-4-march-2021-20210304/ Open / Comment

2021-03-04 19:59:35 #WaveAnalysis
#USDCHF broke resistance area

• Likely to test resistance level 0.9300

https://fxpro.news/market-snapshots/usdchf-wave-analysis-4-march-2021-20210304/ Open / Comment

2021-03-04 14:07:11 Fed will not protect Nasdaq from falling

Growth companies that dominate the Nasdaq index are losing their appeal as long-term bond yields continue to rise. Against this backdrop, the Nasdaq lost another 2.7%, the Dow Jones 30 was down 0.4%, and the S&P500 maintained its intermediate position, retreating by 1.3%.

Simultaneously, the dollar continues to strengthen in pairs with safe-haven currencies, CHF and JPY. Meanwhile, risk-sensitive GBP, AUD and CAD have stabilised in very narrow ranges this week.

This uneven weakening of the stock markets and commodities means the Fed will not enact further policy easing, which causes Nasdaq stocks to underperform. Other developments might indeed turn out to be something of a repeat of the deflating dot-com bubble of 2000-2002 when the Nasdaq lost 83% of its peak compared to the 38% of the Dow Jones 30.

https://fxpro.news/daily-economic-events/fed-will-not-protect-nasdaq-from-falling-20210304/ Open / Comment

2021-03-03 19:33:38 #WaveAnalysis

#USDJPY approached resistance level 107.08

• Likely to rise to resistance level 107.55

https://fxpro.news/market-snapshots/usdjpy-wave-analysis-3-march-2021-20210303/ Open / Comment

2021-03-03 19:33:05 #WaveAnalysis

#WTI oil continues to rise

• Likely to test resistance level 64.00

https://fxpro.news/market-snapshots/wti-oil-wave-analysis-3-march-2021-20210303/ Open / Comment

2021-03-03 17:35:55 US private employment data from the ADP showed a rise in employment of 117K in February compared to 195K a month earlier.

For the US, employment growth of around 200K a month keeps the unemployment rate at the same level due to new hiring. Since December, however, we see that the labour market is not recovering and continues to lag behind the natural trend.

Although in previous months, disappointing data from ADP was ignored by the markets, this time, the index futures increased their decline after the publication. The Nasdaq100 has fallen back below 13000, losing 1.5% from the intraday high at the start of European trading.

As we have often seen in the last few days, the Dow Jones was much more modest, losing 0.7%. In the foreign exchange market, demand for the dollar as a middle ground between overseas markets and US Treasuries, whose yields have become more attractive in the last month, returned to early trading. Open / Comment

2021-03-03 14:40:02 Market split: Asia positive amid fresh US tech sell-off
Asian indices are rising on Wednesday morning, adding 0.6% on the MSCI Asia-Pacific without Japan, with the Nikkei225 up 0.5%.

Yesterday, the Nasdaq 100 index lost 1.9%, dragged down by a sell-off in the technology sector against a 0.45% decline in the Dow Jones. Tesla and Apple shares sold off again, losing more than 2% and 4.4%, respectively. These are all signs of a restored cautionary trend marking overbought conditions in the high flying sectors of last year, which scared the markets at the end of February.

Currency and debt markets, in contrast to Asia today, are also calling for caution. The dollar index is almost unchanged on Wednesday morning and has lost 0.5% from Tuesday’s peaks. The Yen and Swiss Franc weakness pulled the DXY up, while a rebound in the euro from the 1.2000 level has caused short-term pressure on the dollar. The pound is cautiously gaining, again climbing towards 1.4000 after touching 1.3850 on Monday. Open / Comment