News & Analysis

Mixed Data Friday, DOW – S&P500 New Records; USD finishes the week on a high. Oil surges to new 2017 Highs.

Nov 6, 2017 | Daily Market Outlook

Today’s high impact news:

13:00 NZD Inflation Expectations

(no set release time) BOJ Gov Kuroda Speaks



After a volatile week, Friday delivered further surprises as the USD came surging home in the NY session. US stocks made new highs on Friday on the back of a sharp rally in Apple shares. Qualcomm also jumped as Broadcom considers acquiring the chipmaker. The Dow Jones closed 22.93 points higher, the S&P500 closed 7.99 points higher and NASDAQ added 49.49 points to outperform the S&P and the Dow, by 0.7 percent.

US employment data came out mixed, non-farm employment change missed 312K expectations coming in at 261K. Unemployment fell to 4.1%. Average hourly earnings came out lower than expected at 0.0%, a shock as it fell 0.2% under expectations and 0.5% below the last release. Canadian data came in mixed, employment change increased to 35.3K but unemployment rose to 6.3%. Canada’s trade balance missed expectations but stayed steady at -3.2B. This lead the USD lower, we saw risk pick up with gains on the EURUSD and GOLD. Despite the CAD news mainly missing the USDCAD dropped losing 97 pips, ending the week 58 pips weaker. The USDCAD made its first weekly lower close since the 8th of October. The surprises didn’t end there, the ISM Non-Manufacturing PMI came in at 60.1 smashing expectations of 58.5. The USD picked up after this data paring loses. The EURUSD, AUDUSD and GOLD lost gains and finished the week lower.

Oil continues to move north closing at new 2017 highs. Price closed at 55.82 its best level since 2015. We’ve seen four weekly higher closes in a row now, a gain of 633 cents in the last four weeks.

This coming week isn’t as data heavy as the last, key releases coming up are; Tuesday – RBA rate decision – ECB statement. Wednesday – Federal Reserve statement – Bank of Canada statement. Thursday – RBNZ rate decision and statement – RBNZ press conference. Friday – SNB Chairmen statement – RBA monetary policy statement.

EURUSD  – Looks locked into a consolidation pattern. 1.1662 resistance continues to hold firm, buyers continue to hold from 1.1590 short-term support on the downside. A break lower could confirm a developing bearish continuation pattern.

OIL – Closed at new 2017 highs in Friday’s session. Price has moved back to levels not seen since 2015. Regular divergence has started to develop on the daily chart, while not confirmed it could be suggesting buyers are starting to run out of puff. 

Good trading from Eightcap.

Sources Reuters, CNBC

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