Here’s what you need to know to trade today Friday, July 5th:
Following the Independence Day holiday in the US, trading conditions are starting to normalise in the first part of Friday. Eurostat will publish retail sales data for May and later in the day the US Bureau of Labour Statistics will publish the June employment report, which will include Non-Farm Payrolls, the unemployment rate and wage inflation figures. Statistics Canada will also publish labour market data before the weekend.
The US Dollar (USD) is trading under modest bearish pressure as the currency still feels the negative impact of disappointing data releases on Wednesday. The Dollar Index closed the first four days of the week in negative territory and was last seen posting small losses near 105.00. On a weekly basis, the index was down nearly 0.8%.
US Dollar PRICE this week
The table below shows the percentage change of the US Dollar (USD) against the major currencies this week. The US Dollar was the weakest currency against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.05% | -1.02% | 0.03% | -0.49% | -0.96% | -0.36% | 0.04% | |
| EUR | 1.05% | -0.20% | 0.78% | 0.25% | -0.04% | 0.38% | 0.78% | |
| GBP | 1.02% | 0.20% | 0.99% | 0.46% | 0.18% | 0.58% | 0.99% | |
| JPY | -0.03% | -0.78% | -0.99% | -0.54% | -0.94% | -0.40% | 0.02% | |
| CAD | 0.49% | -0.25% | -0.46% | 0.54% | -0.43% | 0.13% | 0.53% | |
| AUD | 0.96% | 0.04% | -0.18% | 0.94% | 0.43% | 0.41% | 0.90% | |
| NZD | 0.36% | -0.38% | -0.58% | 0.40% | -0.13% | -0.41% | 0.43% | |
| CHF | -0.04% | -0.78% | -0.99% | -0.02% | -0.53% | -0.90% | -0.43% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
The Labour Party has officially won enough seats in the 2024 UK general election to have a majority in parliament, as widely anticipated. Labour leader Keir Starmer is set to become the next prime minister. This development does not appear to have a noticeable impact on the valuation of the Pound Sterling. At the time of publication, the GBP/USD is trading slightly higher on the day near 1.2800.
He EUR/USD continues to rise after posting small gains on Thursday and is trading in positive territory above 1.0800 on Friday morning.
He USD/CAD remains under bearish pressure and is trading near 1.3600 ahead of US and Canadian employment data.
He USD/JPY extends its correction from the multi-decade high reached near 162.00 earlier in the week and is trading below 161.00 at the start of the European session.
Following Wednesday’s rally, Gold fluctuated in a very narrow channel and closed the day virtually unchanged. XAU/USD gains traction early on Friday and trades modestly higher on the day above $2,360.
Economic indicator
Nonfarm payrolls
The most important result contained in the employment situation report is the monthly change in non-farm payrolls published by the US Department of LaborThe report publishes estimates of job creation for the previous month and revisions to the data for the previous two months. Monthly changes in payrolls can be very volatile and the release of this report generates high volatility in the dollar. A result above the market consensus is bullish for the dollar, while a result below expectations is bearish.
Next post: Fri Jul 05, 2024 12:30 PM
Frequency: Monthly
Dear: 190K
Previous: 272K
Fountain: US Bureau of Labor Statistics
The US monthly employment report is considered the most important economic indicator for currency traders. Released on the first Friday following the reported month, the change in the number of employees is closely linked to the overall performance of the economy and is monitored by policymakers. Full employment is one of the Federal Reserve’s mandates and it considers the developments in the labor market when setting its policies, which affects currencies. Despite several leading indicators shaping estimates, Nonfarm Payrolls tends to surprise markets and trigger substantial volatility. Actual figures that beat consensus tend to be bullish for the USD.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
