Eyes on Jobless Claims & NFP

All eyes are headed toward the US Jobless Claims and the Jobs Report (NFP). The data that were announced during the past two days, including the purchasing managers’ index for both the manufacturing and services sectors, as well as employment data in the private sector, all indicated one main thing, which is a weakness in employment for all these sectors. In other words, the impact of raising interest rates during the past months has begun to show on the sectors with delayed effects.

Today’s numbers, including the jobless claims, will also be a new signal, and they may be much higher than expected. But the most important are the NFP on Friday.

It will be sufficient reason for the Fed to stop raising interest rates in the upcoming meeting, which could have a positive impact on US equities depending on the surprises that may be announced today and tomorrow.

The 10-year yields indicate a significant movement to come.

The 10-year yields indicate a significant movement is coming. During yesterday’s trading, the yield on 10-year US bonds fell below 3.28%, recording its lowest close since last September. This closure opens the way for further declines that may reach 3.0% in the coming days, with employment numbers possibly being the main catalyst for this movement.

Current Trades:

We still hold long positions for AUDUSD and NZDUSD. There have been no adjustments to these positions so far.

The AUDUSD longs were made at 0.6780, 0.6729, 0.6740, and finally 0.6705, totaling four contracts. Stop loss orders for all these positions are at the lowest levels of this week’s session, which is 0.6650.

As for the New Zealand dollar, after closing half of the positions at 0.6207 with a gain of 150 points, we are maintaining the stop for the remaining positions slightly above the entry levels, and we will keep these positions until further notice.

We also have an S&P500 position from yesterday’s levels at 4094, and we may add to this position during today’s trading session before the closing bell.