English (India)
5
Aug

U.S. NFP, European Industrial Production Data, DraftKings Earnings

calendar 05/08/2022 - 07:41 UTC

The U.S. dollar traded overall weaker against other major currencies with the USDX index down by 0.59% on Thursday. Multiple emerging market pairs like the USD/ZAR, USD/MXN and USD/CNH also traded lower on the weaker dollar. The USD/TRY pair on the other hand remained stubbornly around the 18.0-mark just as the pair was mostly unmoved earlier when the dollar was appreciating on Tuesday.

Sentiment in the stock market was overall positive with indices like the US Tech 100, Germany 40 and Europe 50 continuing to move to the upside. Even Asian indices like the Japan 225 (Yen) and China A50 were trading higher by Friday morning. Meanwhile the volatility index VIX fell to a new low since April.

A turnaround in the crypto markets could be observed on Friday with both Bitcoin and Ethereum trading at that time higher compared to Thursday. Even Solana was trading stronger, gaining more than three per cent since midnight. Solana came under scrutiny on Wednesday following reports that tokens worth millions of dollars were stolen from some holders of actual tokens as they were a vulnerability in certain wallets.

On Friday in the United States non-farm payrolls (NFP) data will be published, followed by consumer credit statistics later in the evening. Also, on Friday unemployment rate data will be released for the U.S. and Canada.

EUR/USD

The EUR/USD rate managed to recover above the 1.02-threshold given the overall weakness of the dollar and the robust performance of the euro as the common European currency appreciated on Thursday against all other major currencies with the exception of the Japanese yen (JPY).

German and French industrial production data released during the early morning hours on Friday was to some extent better than expected with the German Industrial Production once again moderately improving by 0.4% on a monthly basis this time, while French industrial Production recovered from the flat goth in the previous month and was up by 1.4% in June. A little bit later also Italian data will be published.

EUR/USD

Gold

Gold prices continued to recover with the precious metal traded now at a new four weeks high. Even after discounting for the weakening dollar, the price of gold is still up significantly over the past days with the Gold (EUR) CFD trading by Friday morning up by roughly 1.5 per cent.

While platinum prices also strongly rebounded this week the recovery in the silver and palladium markets is far more restrained with both metals on track to close the week in a position almost unchanged compared to the previous week.

As in every week, on Friday the U.S. CFTC publishes its weekly Commitment of Traders (COT) statistics, which also include net speculative positions of many futures markets. Last week the number of net positions in gold further declined to the lowest level since 2019 and silver positions turned even negative on a netted basis.

Gold

WTI Oil

Oil prices are on track to end this week with the worst performance since March as the price of WTI crude oil tumbled for the first time below the levels seen just after the conflict between Russia and Ukraine started to escalate at the end of February. An even steeper drop occurred in the gasoline market with the price down by almost ten per cent compared to last week and gasoline set to close the week lower for the seventh time in the past nine weeks.

As usual on Friday the U.S. Baker Hughes Oil Rig Count statistic will be published. Last week the number of operating oil rigs reached for the first time since March 2020 the level of 605.

WTI Oil

US 500

Stock markets continued to move to the upside, albeit at a slower pace compared to the rally seen on Wednesday, while the US 30 index traded even moderately lower during the trading session on Thursday. Still the upwards momentum was enough for the US 500 index to reach a new eight weeks high.

One of the best-performing blue chip stocks on Thursday was AMD (+5.83%) with the stock price recovering from the small dip seen after earnings were released, bringing it on track to close higher for the fifth week in a row.

After hours DoorDash shares traded with a strong upside after the company reported a solid growth in terms of users, reaching a new record high as well as better revenue than anticipated, amounting to $1.61 billion in the past quarter.

Shares of Virgin Galactic on the other hand came under pressure tumbling by more than 12 per cent in the extended session following a miss on earnings as losses widened to $111 million and the company announcing that it would delay its commercial launch until Q2 of next year.

On Friday quarterly results from multiple companies including Canopy Growth and DraftKings can be expected.

US 500

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