The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
The US labor market is in focus again
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
Once a week, the US Department of Labor publishes how many people filed for unemployment insurance. This is the most recent update on the employment data in the United States. Despite quite optimistic NFP last week when the indicator increased by 4 800K (vs. the forecast of 3 037K), the weekly unemployment claims for July 2 reached a higher level than expected. While analysts anticipated it to increase by 1 350K, the actual figures showed a rise of 1 427K.
- If the actual level of unemployment claims is lower, the USD will rise;
- If the actual level of unemployment claims is higher, the USD will fall.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…