In addition, foreign exchange and commodity markets were extremely volatile on Friday as well. Traders were still busy sifting through the implications of the surprise US jobs data. The GBP/USD currency pair remained under the 1.3550 level. This indicates very light bearish selling pressure as it was unable to gain any sort of bullish momentum during US trading hours. At the same time, the EUR/USD cross dropped below 1.1400 and continued to lose ground through the day’s second half.
Within the commodities space, precious metals saw prices of gold retreat to trade just under $3350/oz. The ongoing selling pressure for the precious metal took its toll. This trend is indicative of how investors are reacting to the greatest economic sign – the market itself. The recent volatility in these markets reflects the continued uncertainty over current economic conditions and their effect on future investment decisions.
In particular, the GBP/USD cross saw volatility across the entire American trading session, as it continued to trade with light bearish bias. The market participants have been watching the volatility closely of this currency pair, especially after the economic releases earlier in the week. Market watchers noted how the duo failed to break above the 1.3550 level. This reluctance may be a sign that traders are being more prudent as they adjust to the new market environment.
Even the strongest of the pairs, the EUR/USD pair stumbled on Friday as well. Once it fell past the 1.1400 figure, it found it hard to recover. Over the past five days, traders blamed this continued bearish pressure in the latter half of the day, leading to the drop. All eyes were on the recent US Non-Farm Payroll (NFP) data to dictate investor sentiment. It further disrupted trading patterns in all currency pairs.
The metals had downward pressure on the commodities front. At the end of the European session, it was moving just below the psychological level at $3,350 during the American session. Indeed, gold prices are down sharply today as investors look for riskier assets. This move follows very positive labor market news out of the US. Gold’s standing is getting shakier by the day. It’s getting hard to walk the dog, underscoring a complicated dynamic at play between key economic indicators and commodity prices.
Indeed, as of Wednesday Tesla Inc. (TSLA) closed above $332. This constituted a remarkable comeback after an ugly sell-off had forced its shares under $274 earlier in the week. The electric vehicle manufacturer’s drop of 17% was enough to worry investors over its growth path and market positioning. As TSLA works its way through these clouds, TSLA market analysts are still measuring its maneuverability in the face of the economic wind.