European Equities Started Lower due to Weaker US non-farm payrolls report, Gold Below 1,500

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

nfp data

European Equities Started Lower, Gold Below 1,500

October 8, 2019

Nikkei 225 benchmark in Tokyo ended 1.02% higher at 21,591, recovering from losses yesterday as investors turn their attention to the latest US non-farm payrolls report. Traders increased their bets that the Fed will slash interest rates at its next meeting on October to protect the economy from slowing growth abroad and the effects of the trade war. The Hang Seng index is trading 1.11% lower 25,821. The ASX 200 in Australia is trading 0.37% higher at 6,517.

European indices started the day lower. DAX is trading 0.42 lower at 12,046. CAC40 is 0.43 per cent lower at 5,498, while the FTSE MIB in Milan is 0.39 per cent lower at 21,567. In London, FTSE 100 is trading 0.03% lower at 7,196. The UK is scheduled to leave the EU on October 31.

In commodities markets, crude oil trades 0.72 per cent higher at $53.13 as global growth worries weigh on crude. Brent oil is trading 0.84% higher at $58,84 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,497, as the momentum turns neutral after the price trades below the 50-day moving average. On the upside, strong resistance will be met at 1,555.13 recent high while support is at 1,458 the recent low.   

US non-farm payrolls report
BTCUSD Daily Chart

In cryptocurrencies, Bitcoin (BTCUSD) momentum is neutral now as BTC trades higher at 8,154, hitting the daily low at 8,130 and the daily high at 8,331. Bitcoin short term momentum is neutral now as it trades between the 50 and 100-day moving average. Immediate support for BTC stands now at $7,686 recent low, while next support stands at 7,406 the low from June 2nd. On the upside, strong resistance now stands at 8,412 and then at 9,000 round figure. Ethereum (ETHUSD) trades higher at 179,08 with capitalisation now to 19.52 billion, and on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th. Litecoin (LTCUSD) trades higher at 56.44. The crypto market cap capitalization now stands above $221.48 billion.

On the Lookout: China’s Caixin Composite PMI came in at 51.9 in September from 51.6 in August.

Australia business confidence came in at 0, the previous reading was 1 while the business conditions came in at 2 from the previous reading of 1. The Japan Household spending for August came in at +1.0% y/y above expectations of -1.0%. 

Trading Perspective: In forex markets, USD index trades 0.08 per cent lower at 98.90, the Aussie dollar trades 0.31 per cent higher at 0.6753, while Kiwi trades 0.56% higher at 0.6324.

US non-farm payrolls report
XAUUSD Daily Chart

GBPUSD trades 0.30% lower at 1.2255 as we are getting closer to the Brexit deadline. Major support now stands at 1.2078 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2447 the 100-day moving average while more offers will emerge at 1.2729, the 200-day moving average.

In Pound futures markets open interest increased by 1,000 contracts, volume decreased by around 42.800 futures contracts.

EURUSD trades 0.15% higher at 1.0986, as the pair trapped in the descending channel that might drive the price lower. Immediate resistance for the pair stands at 1.1053, the 50-day moving average and then at 1.1146 the 100-day moving average. On the downside, immediate support stands at 1.0964 today’s low and then at 1.0835 the low from 2017.

In euro futures markets open interest increased by 719 contracts, volume decreased by around 44.300 futures contracts.

USDJPY is trading 0.08% lower at 106.16 having hit the daily low at 107.09 and the daily high at 107.48. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.46 the high from September 19th, and then at 109.06 the 200-day moving average. 

In Yen futures markets open interest decreased by 554 contracts, volume decreased by around 25,100 futures contracts.

USDCAD is trading 0.03% lower at 1.3304 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.  

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