The dollar traded in a narrow range yesterday, as US private employers hired more workers than expected in December, suggesting continued strength in the labour market, which is expected to continue to sustain the Economic. All eyes are on the Non-farm payrolls of the US. The dollar index traded almost flat at 102.41.
Sentiment was supported by the news that US private employers hired more workers than expected in December. Private sector payrolls rose by 164,000 jobs last month, the ADP national employment report showed, the biggest monthly gain since August. Economists polled by Reuters had predicted that private sector payrolls would increase by 115,000.
Initial government jobless claims fell by 18,000 to a seasonally adjusted 202,000 in the week ended December 30, also strengthening the dollar. Economists polled by Reuters had forecast 216,000 claims last week. 4,444. Further, the Euro also recovered as markets expect eurozone headline inflation to pick up in today’s December issue, which could support a hike by the European Central Bank (ECB) with longer interest rates.
Consumer prices in France rose as expected in December, preliminary data from the National Statistics Office showed on Thursday, which is due to higher prices of energy and services during the year. In Germany, consumer price inflation accelerated to 3.7% in December, as expected, compared to 3.2% a year earlier. Copper rebounded from intraday lows on a calm dollar, but markets and revised expectations about the scope and timing of US Federal Reserve rate hikes capped gains
MCX gold futures up 0.21% to 62640. Silver settled flat at 72336. Copper fell 0.36% to 724.95. Crude oil 6034, down 0.61%. Natural gas gain 5.74% to 235.90. So what’s the deal with the non-farm payrolls from the US?
Economic data and events scheduled – Will non-farm payrolls take over?
Japan
At 10.30am- Consumer Confidence. Data is foreseen at 36.4 from previous 36.1.
Above data could have a positive impact on Yen.
Eurozone
At 12.30pm- German Retail Sales m/m. Data is foreseen at -0.5% from previous 1.1%.
At 3.30pm-
Core CPI Flash Estimate y/y. Data is foreseen at 3.4% from previous 3.6%.
CPI Flash Estimate y/y. Data is foreseen at 3.0% from previous 2.4%.
PPI m/m. Data is foreseen at -0.1% from previous 0.2%.
Italian Prelim CPI m/m. Data is foreseen at 0.2% from previous -0.5%.
All above data could have a volatile impact on the Euro.
UK
At 12.30pm-Halifax HPI m/m. Data is foreseen at 0.1% from previous 0.5%.
At 3.00pm-Construction PMI. Data is foreseen at 46.1 from previous 45.5.
Above data could have a positive impact on the Pound.
Canada
At 7.00pm-
Employment Change. Data is foreseen at 12.2k from previous 24.9k.
Unemployment Rate. Data is foreseen at 5.9% from previous 5.8%.
All above data could have a volatile impact on the Canadian dollar.
US
At 7.00pm-
Average Hourly Earnings m/m. Data is foreseen at 0.3% from previous 0.4%.
Non-Farm Payrolls. Data is foreseen at 168k from previous 199k.
Unemployment Rate. Data is foreseen at 3.8% from previous 3.7%.
At 8.30pm-
ISM Services PMI. Data is foreseen at 52.5 from previous 52.7.
Factory Orders m/m. Data is foreseen at 2.0% from previous -3.6%.
Above data could have a volatile impact on the dollar.
Also Read: German Inflation and US Unemployment – What Lies Beyond the Clash? , Gold Price Hits Predicted Target: Will gold make a comeback?
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