Friday was rough for the foreign exchange and commodities markets. Traders were positioning ahead of the widely expected US Nonfarm Payrolls (NFP) report. After stalling out around 1.3550, the GBP/USD currency pair came under light selling pressure, and the EUR/USD traded back below 1.1450. The gold bullion market saw solid support above the $3,350 mark in the commodities sector, warily eyeing US employment data.
GBP/USD was still firmly in negative territory during the European session, hovering below the 1.3550 level. The build-up to Thursday’s US NFP report has triggered a bout of cautious trading, with many investors paring back on positions. It seems that the market players are particularly interested in knowing the way US Dollar will behave to the next coming economic data.
The EUR/USD had a rocky day, falling back below the 1.1450 mark as the day went on. Traders are recalibrating their positions in front of the NFP release. This change in momentum is a microcosm of a macro trend occurring in the world currency market. The US Dollar had some big positive bullish traction. It retraced from its recent bottom since April 22, made on Thursday.
“GBP/USD keeps the red near 1.3550, US Nonfarm Payrolls eyed” – www.fxstreet.com
As gold markets anticipated the big NFP data, analysts pointed out that gold prices remained firmly anchored above $3,350. Now traders are looking beyond the CPI, with an eye on the employment report. Economic indicators It’s being touted as a potential kay to unlocking the great health of the US economy. Gold price continues to recede modestly from daily highs but still maintains a mildly positive bias.
“Gold holds steady above $3,350 as focus shifts to US employment report” – www.fxstreet.com
Against this backdrop of currency movements, the mercurial Tesla stock made the news. After closing above $332 on Wednesday, TSLA shares had one of the worst selloffs in memory, trading below $274 by late Friday afternoon. That marks a 17% sell-off. All that and investors can’t even enjoy the breakup that Elon Musk is soon to have with Donald Trump.
“Tesla stock down 17% as Musk-Trump breakup worries Wall Street” – www.fxstreet.com
As the day draws on, all eyes on Wall Street are waiting to see what potential chaos could come from the release of this highly anticipated NFP report. The key trade The data is expected to impact not just currency valuations, but investor sentiment in the respective sectors as well.