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Morning Report: Market Awaits US Jobs Report

Morning Report: Market Awaits US Jobs Report

05 July 2013

GLOBAL - The market place was on hold early Friday, awaiting the US jobs report.

Look for active trading in many markets, in the immediate aftermath of the employment report. However, activity is likely to quickly die down as many are still on their US Independence Day holiday.

Traders and investors are also anxiously watching developments in Egypt. Crude oil prices have risen Friday on news that a state of emergency has been declared in the Suez and South Sinai provinces of Egypt. Reports said there was an Islamist attack at the Arish Airport. While reports said the Suez Canal is operating normally, any disruption of one of the world’s most important major world waterways would be very market-sensitive. Earlier this week the Egyptian military overthrew the sitting president and installed its own temporary leader.

European stocks were narrowly mixed Friday as the U.S. jobs report was awaited. Traders are still digesting the somewhat surprising news from the European Central Bank and the Bank of England Thursday, in which both gave forward guidance and said they would keep interest rates low for the foreseeable future. The market place perceived central banks’ statements to be firmly on dovish side. The Euro currency has seen selling pressure following the ECB meeting.

ENERGY MARKETS

August Nymex crude oil was higher overnight as it extends the rally off April’s low. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near-term. If August extends the aforementioned rally, last April’s high crossing at 104.50 is the next upside target. Closes below the 20-day moving average crossing at 97.16 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 102.19. Second resistance is last April’s high crossing at 104.50. First support is the 20-day moving average crossing at 97.16. Second support is the reaction low crossing at 92.67.

CURRENCIES

The September Dollar was higher overnight as it extends the rally off June’s low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If September extends the rally off June’s low, May’s high crossing at 84.83 is
the next upside target. Closes below the 20-day moving average crossing at 82.37 would confirm that a short-term top has been posted. First resistance is the 87% retracement level of the May-June decline crossing at 84.31. Second resistance is May’s high crossing at 84.83. First support is
the 10-day moving average crossing at 83.33. Second support is the 20-day moving average crossing at 82.37. 

 

TheCropSite News Desk



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