US Jobs report beats expectations, US dollar rallies

Published Sat 07 Aug 2021 01:15 by Technical Analyst

Last Week Risers & Fallers:

Apple Inc. (NYSE: AAPL) share price closed 0.2% for the week on Friday. However, Apple shares are in consolidation, and stocks are near a buy zone. In addition, Apple posted solid earnings last quarter.

NVIDIA (NASDAQ: NVDA) share price increased by 3.39% this week, closing Friday at $203.66 per share. Nvidia is in the process of acquiring Arm, a semiconductor manufacturer but is facing challenges with the acquisition due to the UK’s concerns around national security. NVIDIA’s stock price surged this week after JP Morgan analysts increased their price target from $176 to $215 per share.

USDCHF gained 99 pips and increased by 1.08%- the US dollar has recovered this week and rallied against all majors on Friday after a better-than-expected NFP report. The report posted 943,000 new jobs in July.

US Oil futures (WTI) price decreased last week, coming off a monthly high of $73.93 a barrel to close at $67.83 per barrel on Friday. Oil has been struggling to due lower demands as the Delta variants threaten the US and China. In addition, drone strikes on tankers transporting oil in the Gulf of Oman have impacted supply.

Major events to watch:

USA (USD): Crude Oil Inventories – Weekly report on the change in the number of crude oil barrels held by US Firms. Last week’s change in levels was 3.626 Million, higher than forecast, which indicates a decrease in demand. The report is due Wednesday 11 August at 16:30 GMT+2.

UK (GBP): UK Manufacturing (MoM) report is due Thursday 12 August at 08:00 GMT+2. It is a measure of the change in inflation-adjusted output produced by manufacturers. Manufacturing accounts for 80% of industrial production. July’s report was -0.1%, lower than the expected 1.0%.

Australia (AUD): Employment Change measures the change in the number of people employed. The report is due Friday 13 August at 03:30 GMT+2. July’s reading was 29,100, lower than the forecasted 30,000. A higher than forecasted reading should be taken as bullish for the AUD, while a lower-than-expected could mean bearish for the AUD.

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