The Week Head – NFP Shakes the Markets

XAUUSD pressured by progressive NFP data

Gold softens as a surprise boost in NFP data saw the dollar jump. The correlation between the yellow metal and the greenback resumed, with a sell-off breaking many supports. After Jerome Powell signalled a potential cut due to the solid economic data, the next FOMC could mean more upside risk for the US dollar at the expense of the precious metal. A deeper correction in the bullion price would send it to 2260, with 2300 as a significant floor.

EURUSD bounces as ECB cuts rate

The euro fluctuated as the ECB followed the BoC by cutting its key interest rate by 25 basis points. ECB president Lagarde reiterated they have made progress in tackling inflation as the euro bloc makes its first cut in 7 years. All eyes will now be on the Fed, as policymakers suggest that there might not even be any signs of cutting this year. However, as the markets remain steady, this could all change in their next meeting, as the early indication is that September is a crucial month for the Fed. 1.0800 is an essential support, and 1.0920 is the first hurdle ahead.

NAS 100 drops away from record high

The Nasdaq fell short of progressing further as employment data from America shook the indices across the board. The central saving grace for the index is the progressive stock earnings, which has seen not only the Nasdaq hitting record highs. With a break at 19,000, traders will be wondering how far price action can go. Volatility is expected to soar as we enter the Presidential race, with 18600 being the closest support.

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