Daily Market Report - 08/02/2016

USD

Global stock markets slumped and the USD rallied on Friday after key US jobs figures painted a mixed picture for the labour market. We also saw oil prices dip, ending the week lower after two weeks of gains. The Non-Farm Payroll figure came out showing an increase in jobs by 151,000 however this was lower than both forecast and previous with previous at 262,000. Nevertheless markets rallied in favour of USD strength as the unemployment rate fell to 4.9 percent which is the lowest since February 2008. Despite a weaker NFP, markets took a hawkish view on the figure which saw the USD regain some strength to claw back some ground against other currencies which we had previously seen it lose out to earlier on in the week.

FED funds futures contracts showed traders boosted their view of a FED rate hike in December to approximately 40 percent in contrast to before the data release where the FED futures contracts were indicated that the FED may wait until next year before raising rates. 
 

EUR

Early on in the day on Friday we saw German Factory Orders MoM come in weaker than forecast at -0.7% against a forecast of -0.3%; with the UK being a key trade partner of Germany we saw little movement on GBPEUR however nothing too significant Nevertheless we did see GBPEUR close the hour lower than the open by almost half a cent; due to better than forecast French trade balance figures which came out at -3.9B against a forecast of -4.5B. Markets were definitely poised for the US employment data release which saw EURUSD depreciate which took the wind out of the sail of the EUR strength we had seen earlier last week.  

Key Announcements

There are no key announcements today