<p>The US jobs report is coming up at the bottom of the hour. A few things to keep in mind as the data crosses:</p><ol><li>The consensus is +300K on jobs and +0.4% on average hourly earnings</li><li>There’s a strong <a target=“_blank“ href=“https://www.forexlive.com/news/preview-august-non-farm-payrolls-by-the-numbers-and-why-its-likely-to-disappoint-20220901/“ target=“_blank“>historical pattern</a> of weak August NFP readings</li><li>Goldman Sachs: „Sweet spot for stocks tomorrow is a 0 – 100k headline reading…should
get a 100+bp rally for S&P in this scenario after this recent
drawdown. If we happen to get a negative number an even sharper rally.“</li><li>ING: „The market may not really need a big surprise to fully price in a 75bp hike in September, and a respectable jobs report may be enough to trigger another leg higher in the dollar today.“</li><li>The dollar is near major resistance on a handful of fronts. This could be the tiebreaker. Next week’s US <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“ target=“_blank“>economic calendar</a> is light and the CPI report is Sept 13 </li><li>Durable goods orders data for July is due out at 10 am ET. It’s probably not a big market mover but it will be notable</li><li>There are no scheduled Fed speakers today</li><li>Monday is a holiday in the US, which could dampen liquidity in the latter half of the day</li></ol>

This article was written by Adam Button at www.forexlive.com.

<p>Another lockdown in China hurt copper prices this week and the worries continue to mount.</p><p>JPMorgan now sees 2022 growth at 3.0% from 3.2%. For 2023 they see 4.6% compared to 5.1% previously.</p><p>I’d still put risks to the downside on those numbers. Property-fuelled construction growth was the keystone of Chinese growth for a long time. There will be more infrastructure spending but the tide is going out on apartments/condos. Where that ends is tough to predict but the pendulum hasn’t stopped swinging yet. </p><p>This week Country Garden Holdings, which for years ranked as the top developer in China in terms of sales had this to say: </p><p>“All these exert mounting pressure on all participants in the property
market, which has slid rapidly into severe depression.“</p><p>There’s also still no light at the end of the tunnel on covid-zero policies. A lot of narratives hang on the People’s Congress and what will come afterwards. That starts October 16 and may overshadow everything else on the economic calendar for the remainder of the year.</p>

This article was written by Adam Button at www.forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/welcome-to-jobs-day-in-the-us-20220902/“>Welcome to jobs day in the US</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-bulls-locked-and-loaded-above-14000-20220902/“>USD/JPY bulls locked and loaded above 140.00</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/pipeline-operator-data-suggests-nord-stream-flows-to-be-back-on-saturday-as-planned-20220902/“>Pipeline operator data suggests Nord Stream flows to be back on Saturday as planned</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-july-ppi-40-vs-37-mm-expected-20220902/“>Eurozone July PPI +4.0% vs +3.7% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-july-trade-balance-54-billion-vs-48-billion-expected-20220902/“>Germany July trade balance €5.4 billion vs €4.8 billion expected</a></li></ul><p style=““ class=“text-align-justify“>Markets:</p><ul><li>EUR leads, JPY lags on the day</li><li>European equities higher; S&P 500 futures flat</li><li>US 10-year yields flat at 3.263%</li><li>Gold up 0.6% to $1,706.13</li><li>WTI crude up 2.2% to $88.52</li><li>Bitcoin up 0.3% to $20,141</li></ul><p style=““ class=“text-align-justify“>Markets are rather tepid as we count down to the US non-farm payrolls later in the day. That will set the tone before the long weekend, as we get another key data point before the FOMC meeting this month.</p><p style=““ class=“text-align-justify“>The dollar is softer though with EUR/USD climbing back up to parity, up 0.6% on the day. There are large option expiries to be mindful about so be wary of that before they roll off later in the day.</p><p style=““ class=“text-align-justify“>GBP/USD is also up slightly by 0.2% to 1.1570 but remains under threat for a break towards the March 2020 lows. Meanwhile, USD/JPY is staying perky above 140.00 as buyers are locked and loaded for the next upside leg – contingent on what the US jobs report has to offer later today.</p><p style=““ class=“text-align-justify“>Equities are lacking direction but European indices are higher in playing catch up to the late comeback by Wall Street yesterday.</p><p style=““ class=“text-align-justify“>It’s all about the NFP now as we look towards the closing stages of the week.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The pipeline is under maintenance at the moment but is slated to be back up and running tomorrow. That said, capacity has dwindled down to 20% and the above remarks by Russia is hardly encouraging for how things might continue to keep up in the coming months.</p><p style=““ class=“text-align-justify“>For some context, the only working turbine at the key compressor station for the pipeline is said to need technical maintenance every 1,000 hours. That means we are likely to see another brief shutdown again in mid-October.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>That might play into positioning flows ahead of the weekend and trading sentiment early next week, so just be mindful of that. Canadian markets will also be closed, so just a bit of a heads up.</p>

This article was written by Justin Low at www.forexlive.com.