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The U.S. dollar traded overall weaker against all other major currencies with the USDX index retracing even below its level from Tuesday before the rally of that day. Despite the weakness of the dollar, the USD/TRY rate reached a new year-to-date high on Thursday, though by Friday morning the exchange rate fell again below the 16.5-threshold.
While Bitcoin stabilized just above the $30k mark and Ethereum rose above the $1,800-threshold, more significant market moves were seen among some altcoins like Cardano which rose by 6.5% on Thursday and since Monday is trading up by more than 21%.
Global equity markets traded overall clearly higher on Thursday with U.S. and European markets like the US 500 and Germany 40 managing to rebound strongly from the losses of the two previous trading days, while Asian markets like the Japan 225 (Yen) and China A50 continued to trade higher and following the already positive performance during the first half of this week, reached new highs since April.
As usual on the first Friday of the month in the United States the monthly non-farm payrolls (NFP) report will be published, alongside data on average hourly earnings, average work week hours and the unemployment rate. These employment indicators will be followed by the ISM Non-Manufacturing Index.
A strong reversal in the markets also allowed the EUR/USD pair to recover from the slump on Wednesday and trade again around the 1.075-level. The euro itself also appreciated against multiple other majors with the EUR/GBP and EUR/JPY still on the rise, while the EUR/NZD and EUR/AUD rate continued to decline.
For once there was some not so bad news in terms inflation as the eurozone producer price index (PPI) increased only by 1.2% on a monthly basis in April, while analysts expected that price inflation would be twice as high after already increasing by 5.3% in the previous month.
On Friday German trade balance data, French industrial production statistics as well as eurozone composite PMI and retail statistics can be expected.
Gold was up for the second day in a row, reaching a new three-weeks high, an even stronger upside move was seen in other precious metals like silver (+2.72%) and platinum (+2.99%) with the latter at a new two-months high.
On Friday the U.S. CFTC publishes its weekly Commitment of Traders (COT) report which among other data points also indicates the net speculate positions in U.S. futures markets like gold, silver and copper. Last week the number of speculative net positions in gold futures rose for the first time in six weeks.
Oil prices rebounded on Thursday and recovered most of the losses from Tuesday and Wednesday. After the initial rise in oil prices was seen around midday GMT a further upside could be overserved later on around the time the Energy Information Administration (EIA) released weekly inventory numbers. Compared to draw of 1.2 million barrels from crude oil inventories reported by the American Petroleum Institute (API) on Wednesday, the drop in stockpiles amounting to 5.1 million barrels in the EIA release might have been surprisingly high. At the same gasoline and distillate inventories fell by 0.7 million barrels and 0.5 million barrels respectively.
The decision by OPEC+ to bring forward part of the planned supply increase did not significantly changed the total outlook in the market as the increase in production in July by 648 thousand barrels, compared to the 432 thousand barrels planned beforehand will be eventually offset by smaller supply increases until the end of the supply increase schedule in September.
Major stock market indices like the US 500 and US Tech 100 strongly rebounded on Thursday, thus recovering completely from the losses sustained on Tuesday and Wednesday, while the US Tech 100 index even reached a new four weeks high.
Okta (+10.89%), a company which specialise in user authentication services, was one of the best performing stocks on Thursday already during the regular trading session and following the earnings release after regular markets closed the stock continued pushing higher trading in the after hours session as high as $110. The loss of $0.27 per share was less compared to investors’ expectations, while revenue at $415 million noticeably surpassed expectations and increased by 65% compared to the same quarter a year ago.
Overall the tech sector performed fairly strongly during the trading session on Thursday with the Tech-Software ETF (+4.45%) and the US Semiconductors ETF (+3.25%) performing strongly, while one of the few sector ETFs trading lighter was the US Energy ETF (-0.31%).
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