Trading Market Insights:
- Asian shares decline following losses in the US equities market and rising Treasury yields, led by Australian and Hong Kong technology firms.
- The ADP Research Institute reports strong private hiring data in the US, raising concerns about inflation. Automatic Data Processing Inc., the company that issues the report, handles payroll for about one-fifth of all privately-employed individuals in the U.S.
- Swap contracts (bets) indicate a high probability of a quarter-point interest rate hike by July 26, reinforcing expectations of tighter global monetary policy.
- US equity futures edge lower as investors await the release of the highly anticipated US nonfarm payrolls (NFP) data.
- Treasury yields continue to decline in Asia, with the two-year yield briefly surpassing 5%, while the 10-year note yield remains near its highest level since March.
The decline in Treasury yields, along with the two-year yield surpassing 5% and the relatively high 10-year note yield, reflects shifting investor sentiment and potential concerns over inflation and economic growth.
- Australia and New Zealand experience increases in their bond yields.
Increases in their bond yields, means it is likely to put downward pressure on both countries' equities and currencies.
Increases in bond yields typically attract capital flows to fixed-income investments, reducing demand for equities and leading to currency depreciation as investors seek higher returns elsewhere.!!
- Currencies in Asia show mixed performance, with the Bloomberg Dollar Spot Index reaching a four-week high and the yen remaining relatively stable.
- Binance Holdings Ltd. faces executive departures amidst regulatory challenges, with ongoing probes in the US, Europe, and Asia Pacific.
- Oil prices rise slightly and are on track for a second consecutive weekly gain, supported by resilient demand and additional output cuts by Saudi Arabia and Russia for August.
- Gold prices remain near a three-month low and are heading for a fourth consecutive weekly loss, weighed down by upbeat US data, hawkish Federal Reserve expectations, and risk-off sentiment. NFP Watch
US unemployment rate, nonfarm payrolls. 1:30pm (UK time's)
ECB’s Christine Lagarde addresses an event in France 5:45pm
CAD Employment Change/Rate 1:30pm
Dollar Index (DXY) Intraday:
Pivot Level: 103.22
Pivot Level: 1914.21
Crude Oil (WTI) Intraday:
📈Forex Trading Market Insights📈
📈Based on Today's Fundamental and Technical Market Insights📈
Nasdaq 100 Intraday:
Trading tip! Traders often exhibit caution and may reduce their positions or take profits at the end of the Friday trading week, as they seek to avoid potential weekend risk and uncertainties that could arise outside of trading hours.
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