Equities and Forex Producing Caution Ahead of Important Reports
The Bank of England will release its Monetary Policy Summary and Inflation Report today. Tomorrow the Non-Farm Employment Change numbers and Average Hourly Earnings will come from the States. The Dow Jones Industrials will begin trading today above the 22,000 level.
Dow Jones Industrials Above 22,000, NASDAQ Remains Restless
The Dow Jones Industrials finished above the 22,000 level on Wednesday. However, the NASDAQ continues to display signs of restlessness as it again produced marginal losses. An important Services report will come via a Non-Manufacturing Purchasing Managers Index reading today. Factory Orders and Unemployment Claims data will be presented too. But it is tomorrow’s jobs numbers, including the Non-Farm Employment Change and Average Hourly Earnings which traders will begin to focus on in earnest as their reports draw closer.
Services Results Lackluster in China, Yen Lingering in Range against U.S Dollar
Asian investors produced a ‘sea of red’ today with widespread selling across equity markets, including the Nikkei and Shanghai Shenzhen Indexes. The Caixin Services PMI report for China was negative this morning with an outcome of 51.5. Early on Friday, Japan will publish its Average Cash Earnings numbers. The Yen has traded in range against the U.S Dollar the past day and the 110.00 juncture appears to be vital support for the Japanese currency as it continues to display signs of strength.
Investors Watching Bank of England, U.K. Economy Still in Question
The Bank of England and its Governor, Mark Carney, will be watched closely today as the central bank’s Monetary Policy Summary and Inflation Report are issued. Investors will focus on economic outlook, because the U.K economy continues to show signs of being fragile in the midst of uncertainty which is still transpiring because of the Brexit. A Services PMI report will also come from Britain today. The Pound and Euro continue to hold onto their stronger range entering today’s trading against the U.S Dollar.
Cautious Selling in Gold Market, Speculators Remain Ready to Act
Anticipation of tomorrow’s important jobs numbers from the U.S has caused Gold to become rather cautious. The precious metal has seen some headwinds, but remains within the solid territory after gaining the past couple of weeks. Gold is near 1270.00 U.S Dollars an ounce and will remain speculative the next two days of trading.