Article by: ETO Markets
It's Friday, and the US Payrolls Day is here, making the trading scene a bit unpredictable as we wrap up the first week of 2024.
Let's kick off the day with Japan's Consumer Confidence Index for December, and Jibun Bank's December Services PMI. Germany follows with November Retail Sales, and the UK contributes with the Halifax December House Price Index.
Pay attention to these numbers, as expectations differ from the previous reports. Moving on, Eurozone's December Construction PMI and UK S&P December Global Construction PMI are up next.
The Eurozone then reveals its Flash December Inflation Rate and Core Inflation Rate. Eurozone's November Producer Price Index (PPI) follows.
It's a packed economic calendar day, and it all wraps up with the highly anticipated US Payrolls report. Stay tuned for market movements!
Gold (XAU/USD) is trading around $2,040 with little change on Thursday, adjusting from earlier gains in the American session. The US Dollar faced slight pressure on Wednesday due to mixed data and the Federal Open Market Committee (FOMC) Meeting Minutes. In mid-December, the Federal Reserve (Fed) discussed the possibility of rate cuts, as mentioned by Chair Jerome Powell. However, the Minutes don't provide clarity on when the Fed might take action, only suggesting it could happen in 2024.
In other news, the US released the ADP survey on private job creation, revealing the addition of 164,000 new positions, surpassing the expected 115,000. The report also indicates that the labor market is closely aligned with pre-pandemic hiring, hinting at a more stable situation. Looking ahead, the US is set to publish the Nonfarm Payrolls (NFP) report on Friday, expected to show an addition of 170,000 new jobs in September.
WTI prices rose to around $72.70 per barrel in the Asian session, but concerns about US demand stability surfaced due to increased gasoline and distillate inventories. EIA reported a larger-than-expected drop in US Crude Oil Stocks, while API data showed a significant decrease, boosting crude oil prices.
The Biden administration is gradually replenishing the Strategic Petroleum Reserve, repurchasing 13.82 million barrels of domestically produced oil.
Rising tensions in the Israel-Gaza conflict and disruptions at a Libyan oilfield fueled a surge in crude oil prices. The Iran-backed Houthis added to concerns by launching missiles in the Red Sea, and protests led to a complete shutdown at Libya's Sharara oilfield, with a daily capacity of 300,000 barrels.
