<p>The AUD is the strongest and the USD is the weakest as the North American session begins. In the US, the Bureau of Labor Statistics will release their monthly jobs report (Canada will also release their monthly employment data). The expectations are for</p><ul><li>Nonfarm payroll: 205K vs. 263K last month</li><li>Unemployment rate 3.5%</li><li>Avg hourly wages 0.3% vs. 0.3% last month. Year on year 4.7% vs. 5.0%</li><li>Average workweek 34.5 hours unchanged from the previous week</li><li>participation rate last month came in at 62.3 percent</li></ul><p>The leisure and hospitality sector is still 1.1M behind the pre-pandemic level which may be an influence in a rise. Meanwhile the tech sector has announced that about 1/3 of the job announced cuts. Do we see a shift in this months numbers within the details that shows shifting winds. </p><p>US stocks are higher ahead of the report. The major indices are down 4 consecutive days. US yields are trading higher. European stock indices and yields are also higher.</p><p>In Europe this morning, German factory orders plunged -4% vs. -0.5% expected. Ouch. However services PMI although below the 50 level were higher than expectations and higher than last month at 48.6 vs. 48.2.</p><p>The Canada jobs report is expected to show an employment change of a 11.0 K vs. 21.1 K last month. The unemployment rate is expected to rise to 5.3% from 5.2%. Last month full-time employment gain 5.7K while part time employment rose by 15.4K. Average hourly wages came in last month that 5.2% last month</p><p>Looking at other markets ahead of the key jobs reports:</p><ul><li>Spot <a target=“_blank“ href=“https://www.forexlive.com/terms/g/gold/“ target=“_blank“ id=“c0483026-a32e-4e25-8e74-f808d52790c3_1″ class=“terms__main-term“>gold</a> is trading up $22 or 1.35% at $1651.20.</li><li>Spot <a target=“_blank“ href=“https://www.forexlive.com/terms/s/silver/“ target=“_blank“ id=“f3f46493-8e6f-475a-a7ba-a6c320e4d51c_1″ class=“terms__secondary-term“>silver</a> is up $0.44 or 2.3% at $19.89</li><li>crude oil is trading up sharply by $3.10 and $91.27</li><li>bitcoin is trading higher $20,576</li></ul><p>In the market for US stocks, the major indices are trading higher after 4 straight days of declines:</p><ul><li>Dow industrial average is up 157 points after yesterdays -146.51 point decline</li><li>S&P index is up 25.5 points after yesterdays -39.80 point decline</li><li>NASDAQ index is up 76 points after yesterdays -181.86 point decline</li></ul><p>In the European equity markets, the major indices are higher:</p><ul><li>German DAX +1.86%</li><li>France’s CAC up 2.4%</li><li>UK’s FTSE 100 up 1.44%</li><li>Spain’s Ibex up 0.46%</li><li>Italy’s FTSE MIB up 0.92%</li></ul><p>In the US debt market, prices remain pressured/yields are higher after the FOMC rate decision this week and the comments from Fed’s Powell:</p><p>In the European debt market, the benchmark 10 year yields are higher across the board:</p>

This article was written by Greg Michalowski at forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-reportedly-working-on-a-plan-to-scrap-covid-flight-suspensions-20221104/“>China reportedly working on a plan to scrap Covid flight suspensions</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-says-not-aware-of-report-that-it-is-preparing-to-end-covid-flight-suspensions-20221104/“>China says „not aware“ of report that it is preparing to end Covid flight suspensions</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-to-make-significant-changes-to-covid-policy-soon-says-former-government-expert-20221104/“>China to make significant changes to Covid policy soon, says former government expert</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-pill-we-still-think-there-is-more-to-do-on-inflation-pressures-20221104/“>BOE’s Pill: We still think there is more to do on inflation pressures</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-hauser-says-wait-and-see-on-gilt-sales-20221104/“>BOE’s Hauser says „wait and see“ on gilt sales</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-september-industrial-orders-40-vs-05-mm-expected-20221104/“>Germany September industrial orders -4.0% vs -0.5% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-september-ppi-16-vs-17-mm-expected-20221104/“>Eurozone September PPI +1.6% vs +1.7% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-october-final-services-pmi-486-vs-482-prelim-20221104/“>Eurozone October final services PMI 48.6 vs 48.2 prelim</a></li></ul><p>Markets:</p><ul><li>AUD leads, USD lags on the day</li><li>European equities higher; S&P 500 futures up 0.7%</li><li>US 10-year yields up 3 bps to 4.154%</li><li>Gold up 1.3% to $1,650.68</li><li>WTI crude up 3.7% to $91.43</li><li>Bitcoin up 1.7% to $20,584</li></ul><p style=““ class=“text-align-justify“>European trading today was meant to be more of a placeholder session ahead of the US non-farm payrolls report later today. However, hope is a powerful thing as markets caught whiff of another China reopening headline and domestic stocks soared. The positive sentiment spilled over with US futures ticking higher while the dollar sagged across the board.</p><p style=““ class=“text-align-justify“>The greenback is under pressure against the commodity currencies in particular, with the aussie choosing to realign itself with Chinese stocks today. AUD/USD is up 1.4% to 0.6380, advancing from around 0.6340 in the handover from Asia. Meanwhile, USD/CAD is down 0.9% to 1.3620 and NZD/USD is up 1.1% to 0.5840 on the day currently.</p><p style=““ class=“text-align-justify“>The dollar’s sluggishness also sees EUR/USD up 0.5% to near 0.9800 while GBP/USD is up 0.4% to 1.1210 with the high earlier touching 1.1250 as the pound looked to try and claw back some of its post-BOE drop.</p><p style=““ class=“text-align-justify“>In the commodities space, gold is up over 1% as it bounces off the September and October lows to around $1,650 while oil is benefitting strongly from the China headlines as it is up nearly 4% to above $91.</p><p style=““ class=“text-align-justify“>Well, over to the US jobs report now.</p>

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

<p style=““ class=“text-align-justify“>The key focus in markets today is on the US jobs report later but with regards to the Fed outlook, this is very much just the appetizer. Sure, labour market conditions are vital in reaffirming the Fed’s hawkish nod but the main course is still inflation numbers and we will only get that via the CPI data next week.</p><p style=““ class=“text-align-justify“>We’re still at a point where the playbook to the non-farm payrolls is rather straightforward, that being <a target=“_blank“ href=“https://www.forexlive.com/news/when-bad-news-is-good-news-20220726/“ target=“_blank“>bad news is good news</a>; vice versa. A hot report later will vindicate Powell’s hawkish remarks this week while a softer report will take some edge of that.</p><p style=““ class=“text-align-justify“>The dollar is weaker so far today and is holding on the softer side as equities are pushing higher in the run up to the data. In part, one can argue that markets are hopeful that we are moving somewhat towards a reopening trade with regards to China but it also looks like a bit part retracement to the post-Fed reaction.</p><p style=““ class=“text-align-justify“>In any case, the jobs report later will be one to dictate proceedings before the weekend so let’s see what that has to offer later today.</p>

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

<ul><li>Hope to be able to talk more about gilt sales in the next week or two</li></ul><p style=““ class=“text-align-justify“>So far, they are sticking to the game plan but this is with regards to the temporary purchases made this year. As for QT in general, I still have reservations over how they will be able to keep with that as the economy enters into a deep recession next year.</p>

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

<ul><li>Prior +5.0%</li><li>PPI +41.9% vs +42.0% y/y expected</li><li>Prior +43.3%; revised to +43.4%</li></ul><p style=““ class=“text-align-justify“>Another month, another rise in euro area producer prices. The details show a 2.6% increase in the energy sector, a 1.0% jump for non-durable consumer
goods, a 0.4% increase for capital goods and for durable consumer goods and a 0.1% tick higher for intermediate goods.</p>

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