- After a sleepy US-holiday session, the US Non-Farm Payrolls report is set to rock markets.
- Real expectations are lower than official ones after weak data.
- The US and China are reportedly at odds as trade talks resume.
- Cryptocurrencies are on the back foot after rising beforehand.
Here is what you need to know on Friday, July 5th, European session:
– Comatose markets amid the US holiday will likely make way to choppy price action when the US Non-Farm Payrolls report will be released amid thinner trading volume.
– June NFP: expectations stand at 160K jobs gained in June while the “whisper number” is 120K after weak ADP NFP, ISM Non-Manufacturing PMI, and more. Wages are projected to rise by 0.3% MoM and 3.2% YoY, better than in May.
– Canada is expected to report a modest increase in jobs after several months of upbeat employment growth.
– Global bond yields are on the back foot with the German 10-year bund yield temporarily breaching -0.40% – the European Central Bank’s deposit rate. Christine Lagarde’s nomination to lead the ECB has contributed to the move.
– Trade: China reportedly insists that all punitive tariffs and sanctions against Huawei will be removed. The world’s second-largest economy may withhold purchases of US agricultural goods.
– UK politics: Boris Johnson vows to keep the UK’s unity amid criticism. Johnson and Hunt continue battling for the leadership of the country.
– Bitcoin has retreated toward $11,000 and other cryptocurrencies have also dropped.
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