Stocks see early optimism cool with US jobs report coming up 0 (0)

Here’s a snapshot of the equities space at the moment:

  • Eurostoxx +0.1%
  • Germany DAX -0.3%
  • France CAC 40 +0.1%
  • UK FTSE -0.3%
  • S&P 500 futures +0.1%
  • Nasdaq futures +0.3%
  • Dow futures flat

That’s hardly indicative of a more positive risk sentiment, the one that we saw from Asia and early trading in Europe. There are more tentative tones now and if the US jobs numbers later do come in hot, we might just see equities make it four red days in a row to start August trading.

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

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Nasdaq Composite Technical Analysis – Bulls and Bears are watching this support 0 (0)

Last
week, the Fed hiked the interest rates by
25 bps
as widely expected keeping everything unchanged. Fed Chair Powell
reiterated their data dependency and kept all the options on the table. The
economic data since the FOMC meeting has been pretty solid and the labour
market indicators keep on running hot. This week we got a selloff that began
with the rating agency Fitch downgrading US credit
rating
to AA+ from AAA and then extended further as the US ADP report
came in hot again.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite is experiencing a deeper correction as it struggles to extend to the
14649 high. The price currently sits at the previous resistance turned support, but the
sellers may be targeting the upward trendline where
the buyers should step in more aggressively.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we had a divergence with the
MACD on the
last leg higher which is generally a sign of weakening momentum often followed
by pullbacks or reversals. The buyers should pile in here around the 13885 support where we
have also the confluence with the
50% Fibonacci retracement. The
sellers, on the other hand, should pile in more aggressively if the price
breaks lower and target the trendline first, and eventually the 13174 support.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the current bullish setup with the price that may even print a little
inverted head and shoulders
pattern right at the support. What happens here will probably lead to a big
move afterwards, so buyers and sellers will watch this level carefully after
the NFP report today.

Upcoming
Events

Today, all eyes will be on the US NFP
report. The Fed will see another NFP report before the next meeting so this one
won’t decide what they are going to do but it can change market expectations,
nonetheless. It’s hard to see what the market is going to do with this data,
but a strong report should weigh on the Nasdaq Composite as the market would
expect the Fed to remain hawkish and weak readings are likely to cause a
selloff as the market may start to fear a recession on the horizon. The
technicals here should be more helpful to manage risk and position in line with
the flow.

This article was written by FL Contributors at www.forexlive.com.

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ForexLive European FX news wrap: Markets slow down awaiting US non-farm payrolls 0 (0)

Headlines:

Markets:

  • USD leads, CHF lags on the day
  • European equities mixed; S&P 500 futures up 0.2%
  • US 10-year yields flat at 4.192%
  • Gold down 0.1% to $1,931.15
  • WTI crude up 0.6% to $82.05
  • Bitcoin down 0.5% to $29,132

It was a bit of a sideways session as markets are waiting on the US non-farm payrolls later today.

Major currencies saw little appetite as the dollar keeps steady but mostly little changed overall. Meanwhile, equities were optimistic early on as tech shares were buoyed by Amazon’s earnings beat. But gains were tempered during the session, with European indices now trading close to flat levels while US futures are just slightly higher.

Treasury yields are also little changed in general as traders are waiting on the US jobs report later to see if they would want to pile on to the selling that we have seen so far this week in bonds.

The non-farm payrolls later is the first key hurdle highlighted by Powell at the FOMC meeting last week. As such, this could just be marking the calm before the storm later especially if the numbers continue to run hot.

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

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NONE Token Launches the Ultimate High-End Trading Bot on Discord 0 (0)

$NONE has launched as a token powering the ultimate high-end
trading bot on Discord. In just three days since its launch, $NONE has gathered
over 1,600 holders and earned $60,000 to be shared among its thriving community.

As the crypto market continues to evolve, traders are seeking a competitive edge to maximize their profits and stay ahead of the curve. $NONE Token answers this demand with its cutting-edge trading bot, designed to handle cryptocurrencies and NFTs with unparalleled precision and efficiency.

The $NONE trading bot boasts advanced algorithms, real-time data analysis, and smart trading strategies, all working in harmony to execute trades and secure optimal
returns for its users. Whether navigating the volatile crypto landscape or exploring the booming world of non-fungible tokens, $NONE’s trading bot empowers users to make informed decisions and capitalize on lucrative opportunities.

Success in the crypto space depends not only on technological prowess but also on the strength of the community that supports the project. $NONE Token has quickly garnered a dedicated following, with over 1,600 holders embracing the vision of a next-generation trading bot that levels the playing field for traders of all backgrounds.

The vibrant $NONE community is the driving force behind the project’s meteoric rise, as members actively engage in discussions, share trading insights, and celebrate collective achievements. As $NONE continues to attract like-minded traders, the project’s growth is propelled by a shared commitment to excellence and mutual success.

At the heart of $NONE Token’s ethos is the philosophy of rewarding its community of holders. With $60,000 already earned by the project, $NONE is on a mission to share the fruits of its success with those who believed in its potential from the outset.

The earnings generated by the $NONE trading bot are distributed among holders, making each investor an active participant in the project’s financial success.
As $NONE expands its features and user base, the rewards for the community are set to grow, aligning the interests of investors with the project’s long-term vision.

The journey of $NONE Token has only just begun, and the team is committed to an ambitious roadmap filled with innovative features.

NONE is not just a fleeting trend, but a steadfast commitment to the future. In a significant move towards transparency and trust, our CEO, Amadeo Raffy, has chosen to step into the public eye. Amadeo hails from a lineage of excellence in luxury craftsmanship, as his father is the proprietor of Bovet, one of the world’s most prestigious and high-end watchmaking brands. This heritage of quality and dedication is mirrored in the vision and execution of NONE.

Upcoming developments include the much-anticipated sniper bot, designed to identify and capitalize on time-sensitive opportunities with precision and speed.

Additionally, the introduction of a referral program will incentivize community growth and further reward existing holders for their active involvement in the project’s expansion. As $NONE Token continues to push the boundaries of what a trading bot can achieve, traders eagerly await the release of these exciting features.

About NONE

NONE (https://discord.gg/noneth), the premier suite of free-to-use trading tools on Discord. Designed for both cryptocurrencies and NFTs. It serves as the ultimate companion for traders at all levels. For novices, it offers an intuitive, user-friendly interface that simplifies the complexities of DeFi trading. For seasoned traders, it provides customizable settings to adapt swiftly to market changes. Furthermore, membership in the NONE community offers an added incentive: a share in the revenue generated by the bot. This unique feature fosters a sense of community and shared success among its users.

This article was written by FL Contributors at www.forexlive.com.

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BOE’s Bailey: I do not agree that we have lost control of inflation 0 (0)

  • There are two substantial base effects that will bring inflation down this year
  • The economy has been much more resilient, that is good news
  • We were sitting here in November saying it was going to be a long recession
  • And that has not transpired
  • Unemployment has remained historically very low

He’s not wrong in the sense that at the turn of the year, it was all doom and gloom for the UK economy and things have definitely held up better than anticipated. But what will be worrying is that we are now seeing a downturn in the economy and a lot of the same issues have not gone away or abated significantly. Inflation is still high (especially services inflation), wages are running hot, and the cost-of-living crisis is still ongoing.

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

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BOE’s Bailey: I will not judge what the path of rates will be 0 (0)

  • There is more than one path for rates that may deliver inflation back to target
  • We will judge what is most appropriate based on evidence
  • We have to balance the risks; there are risks both ways
  • Economic projections have weakened since May

He doesn’t want to give much away but he’s not explicitly pushing back against the current market pricing either. I would think that all else being equal, another rate hike in September is likely but anything after will have to be reassessed. In a sense, the BOE is just one meeting behind falling in line with where the Fed and ECB are right now.

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

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BOE’s Bailey: We expect food price inflation to fall gradually this year 0 (0)

  • Food inflation appears to have peaked
  • We expect inflation to fall to around 5% in October
  • Services inflation brings „unwelcome news“ since May though

He is still just reading from the statement mostly for now. We’ll get to the Q&A later for the more interesting bits and pieces.

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

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US July Challenger layoffs 23.70k vs 40.71k prior 0 (0)

  • Prior 40.71k

US layoffs fall to the lowest level in nearly a year and this marks the first year-on-year decrease in job cuts since May 2022. That said, there is still more than three times as many announced job cuts so far this year (481,906) compared to the first seven months of last year (159,021). That gives a little bit more perspective on things at the moment.

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

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Just a minor shift in BOE rates pricing right after the decision 0 (0)

Here’s a look at how the OIS curve has shifted before and after the BOE policy decision today:

It’s not much of a change in general as the BOE continues to allude to the fact that they are going to keep tightening policy further so long as the data suggests so. That is regardless of the fact that they have acknowledged that rates are now in restrictive territory.

So, yes there might be some backlash against the fact that traders have priced in roughly 32% odds of a 50 bps move today. However, it is not to say that the trajectory of where rates will end up is wrong or anything in that ballpark. There’s still a strong likelihood of two more rate hikes to come (which was what is priced in before) and that hasn’t changed.

For the pound, that means traders have some things to work out. On the one hand, there will be those „disappointed“ by a 25 bps move instead of a 50 bps move. But when you drill down to the overall pricing picture, it’s not to say that whatever that was priced in previously is being invalidated. Instead, I would argue that it is being reaffirmed instead.

Now, over to Bailey to see how he will follow through on this.

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

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