Despite some economic data being released yesterday, it didn’t impact the market much. However, traders eagerly anticipated today’s release of the Non-Farm Payroll (NFP) data, with investors expecting high employment rates.
Mixed tones were vibrant across the market, with the USD dropping and equities softening. In addition, the bond market experienced heavy fluctuations. European yields remained strong. Short-term yields were slightly lower than in the same period last year, with the long-term bonds slightly higher.
In addition to the mixed tones in the market, many currencies struggled against other major currencies, with most currencies edging up by 1% or more. However, risk currencies remained bullish, with an expected higher employment rate further dragging the USD down.
Friday 10 Economic Calender to Be packed
Today’s economic calendar is packed with action, with the Bank of Japan (BoJ) being a key player. Despite mounting inflationary pressures in the country, the BoJ has not changed its direction in interest rates.
As a result, there is an expected increase in the unemployment rate in Canada, which could hurt the Canadian dollar. Meanwhile, in the US, the unemployment rate is expected to remain unchanged at 3.4%, with the NFP (Non-Farm Payroll) data seeing a slight drop to 224,000 jobs added in February.
The selling pressure surrounding crude remains strong for the fourth straight day, undermining the commodity and acting as a tailwind for the USD.
Gold has declined since Monday after retracing higher for a week. The bearish momentum has been strong enough to send gold down to $1910 from $1940. However, yesterday saw a slight surge as the USD weakened. The surge stopped at moving averages, with investors deciding to reverse their trades and open a selling signal.
Last week, the EUR/GBP currency pair took a bullish turn, pushing above 0.89 in two waves. However, the pair were later moved back as the pound made gains against the US dollar, while the EUR/USD pair remained relatively stable. Despite this, a forex signal was able to close in profit.
Cryptocurrencies are in a retracement period after being in a bull run since the beginning of the year. In January and February, prices saw bullish action, with BTC reaching $25,000, which was a good sign that the dreaded crypto winter was over. However, buyers have been unable to sustain the bull run, and in the past week, most coins have slipped lower due to the general market sentiment and dynamics.
The Decline For Bitcoin Continues
Over the last two weeks, Bitcoin has been experiencing a retracement after its massive bull run, with prices lower after bulls failed to hold the price above $25,000. Currently, it is consolidating at around $23,000.
However, yesterday, the retreat in the crypto market resumed after Federal Reserve President Jerome Powell’s comments, which harmed the market’s overall risk assessment.
In the first month of the year, Ethereum moved above the moving average, which then turned into support, especially the 200 SMA. However, bulls are struggling at the resistance zone above $1800, with sellers attempting to move the price below the 50 SMA over the weekend. As a result, investors will be monitoring to see if the 200 SMA will hold again.