The November US jobs report is upon us (at 8:30 AM ET) with the expectations for 200K (vs 261K last month) and unemployment rate of 3.7% (unchanged). The average hourly earnings are expected at 0.3% vs 0.4% last month.
The Canada jobs report will also be released with expectations of an employment change of 5.0 K versus a very strong 108.3 K rise last month. Full-time employment increased 119.3K while part-time employment fell by -11K last month. The unemployment rate is expected at 5.3% up from 5.2% last month.
Both the CAD and the USD are lower on the day ahead of their reports (the USD is just barely the weakest of the two). The JPY is the strongest of the major currencies.
The USDCAD is trading between its 200 hour MA at 1.3424. The 100 hour MA is up at 1.3474. Yesterday, (and on Wednesday), sellers leaned against the higher 100 hour MA keeping the sellers in play. The levels importance was also increased as a result of the successful tests. Be aware.
The USDJPY fell below the 38.2% retracement of the 2022 range at 137.24 during yesterday's session (bearish). Today the momentum was continued with a cracked below its 200 day moving average at 134.504. The current price is trading at 134.00 to start the NY session. Stay below the 200 day moving average is more bearish with the next major target being the 50% midpoint of the trading year at 132.700.
For the EURUSD, yesterday, the pair closed above the 50% Midpoint of the 2022 trading year. That level comes in at 1.05155. That level will be a key barometer for the pair in trading today. The price is trading at 1.0534 giving the pair a bullish bias into the US jobs report (lower USD).
A snapshot of other markets heading into the jobs report
- Spot gold is trading above and below $1800. The current price is at $1798.46 that's down -4 dollars or -0.22% after the largest percentage gain yesterday of 8.28% since July 2020. The price moved up $135
- Spot silver is trading down 4.4 cents or -0.19% at $22.67. It rose 16.03% yesterday
- WTI crude oil is trading up $0.63 from the settlement price yesterday at $81.85
- bitcoin is trading at $17,008 with a high price of $17,044 and a low price of $16,866 in trading today
In the premarket for US stocks, the major indices are mostly lower after yesterday's mixed results
- Dow industrial average 26 points after yesterday's -194.75 point decline
- S&P index is down one point after yesterday's -3.53 point decline
- NASDAQ index is modestly points after yesterday's 14.45 point rise
in the European equity market, the major indices are mixed
- German Dax +0.48%
- Frances CAC unchanged
- UK's FTSE 100 -0.17%
- Spain's Ibex unchanged
- Italy's FTSE MIB unchanged
in the US debt market, yields are lower with a steeper yield curve. The 2– 10 year spread is down to -68.7 basis points.
In the European debt market, the benchmark 10 year yields are also moving to the downside
