Markets preview 2.7.2020

The risk-on sentiment persisted throughout the Asian session and equity indices are trading half a percent higher during the early London session. 

Traders paid attention to the Australian trade balance data, which improved further in May and printed 8025 million, up from 7830 million in May. However, the number was below analysts' expectations of 9000 million.

However, the most significant attention will be on today's US labor market data. The US economy is seen creating 3,000K new jobs in June, which should be more than 2,500k in May. However, the number may come out anywhere, as analysts have been bad in predicting the NFP figure during the coronavirus pandemic. 

The unemployment rate is expected to fall further to 12.3% from 13.3% previously. 

If these numbers come out well, the rally in stocks could decline, but the US dollar might fall further as the greenback is now considered a safe-haven currency.

Precious metal might be pummelled again if the numbers are good, however, if the NFP number disappoints, metals could rally sharply. 

The US labor market data are due at 2:30 PM CET, and volatility is expected to be extreme afterward. 
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