A look at the day ahead in U.S. and global markets from Mike Dolan
After a frenetic week of G7 interest rate cuts, new records for stocks, another scramble for AI and a wave of elections, world markets have frozen awaiting the U.S. employment report.
The May payrolls report comes just ahead of next week’s Federal Reserve meeting and most of the labor market updates in recent days have indicated a gradual cooling in employment.
WSJ
Jobs Report Expected to Show Hiring Growth
Strong data could push back investor expectations for when the Federal Reserve might start cutting interest rates.
Jobs Report Today: Economists Forecast U.S. Added 190,000 Jobs in May
The unemployment rate is seen holding at 3.9%
Last Updated:
June 7, 2024 at 5:26 AM EDT
In other words: trade that at your own risk
XAUUSD 4 HOUR CHART – CHINA STOPPED BUYING
As can be seen on this chart, XAUUSD tumbled afer news reports that China’s central bank didn’t buy any gold in May, ending a massive gold buying spree that had run for 18 months after the precious metal surged to a record high.
This leaves the market in a quandry after the breakout to the upside saw a quick retreat on the news.
For the risk to shift back to the downside and the 2314 bottom of the range, XAUUSD would need to stay below 2354.
XAUUSD 4 HOUR CHART – CHINA STOPPED BUYING
As can be seen on this chart, XAUUSD tumbled afer news reports that China’s central bank didn’t buy any gold in May, ending a massive gold buying spree that had run for 18 months after the precious metal surged to a record high.
This leaves the market in a quandry after the breakout to the upside saw a quick retreat on the news.
For the risk to shift back to the downside and the 2314 bottom of the range, XAUUSD would need to stay below 2354.
USDJPY 4 HOUR CHART – ON THE ROPES?
USDJPY following lower US yields and a generally weaker USD.
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This has USDJPY staying on the defensive as long as it trades below 156.49
This sets the stage for a key Friday where the reaction to the US jobs report will dictate whether sub-155 can be established for a more serious run to the downside.
NAS100 4 HOUR CHART -no reason to guess
As I have been noting there is noireason to guess at a top unless there is a reason to do so.
On this chart I pointed out a level that would need to be broken to signal a pause.
On the upside, the only resistance worth noting is the most recent set record high.
Gold up at 2377
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Biden says
Biden reveals if he will ever let Ukraine use American missiles to strike Moscow or the Kremlin and dodges question on whether US weapons have already been fired inside Russia
The full interview with Biden will air Thursday at 6:30 p.m. on ABC’s World News Tonight with David Muir program.
A component to watch – If JP Morgan holds selling interest at 192 stocks are going straight up for a near term duration and would be sound a reflection of market interest. Currently 196.90 and under pressure. It can get there in a day. Euro would at a minimum benefit in terms of selling being not overly robust. Some say there is more to trading Euro than your MACD and moving averages.
EURUSD DAILY CHART – 17 DAYS AND COUNTING
EURUSD has been trading with ony a few exceptions in a 1.08-1.09 range FOR 17 DAYS IN A ROW.
This pattern will not go on foreever and while this chart shows a risk for an eventual move higher, during this period trading the range has worked better than betting on breakouts.
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