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The US Dollar traded back towards its weekly lows following a mixed batch of US jobs data this morning. The October US Nonfarm Payrolls report showed the economy gained +261K jobs and the unemployment rate fell to 4.1%, but these figures, among others, were considered disappointing relative to otherwise high expectations (+313K expected). Released alongside the US jobs figures was its Canadian counterpart, which was overall better than consensus forecasts per Bloomberg News (+35.3K vs +15K expected); USD/CAD was quick to move to weekly lows. Earlier, the British Pound took a leg up earlier on the back of improved October UK Markit PMI readings, helping offset weakness from yesterday’s Bank of England policy meeting.
DailyFX Economic Calendar: Friday, November 3, 2017 – North American Releases
The North American economic docket is lighter the rest of the way, but there are still a few meaningful data releases left – all of which come from the United States. At 10 EDT/14 GMT the October US ISM Services/Non-Manufacturing index will be released, providing insight into growth trends for the largest part of the economy at large – the service sector accounts for roughly two-thirds of all jobs in America. Released alongside the ISM report will be September US Factory Orders and the final September US Durable Goods Orders report.
DailyFX Webinar Calendar: Monday, November 6, 2017
IG Client Sentiment Index Chart of the Day: Spot Gold
Learn more about the IG Client Sentiment Index on the DailyFX Sentiment page
Spot Gold: Retail trader data shows 81.1% of traders are net-long with the ratio of traders long to short at 4.29 to 1. The number of traders net-long is 3.1% higher than yesterday and 0.6% lower from last week, while the number of traders net-short is 7.9% lower than yesterday and 10.8% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias.
Five Things Traders are Reading
- “US Dollar Nudged Lower by Mixed October US Jobs Report” by Christopher Vecchio, CFA, Senior Currency Strategist
- “Trading Outlook: NFPs, DXY, EUR/USD, GBP/USD, Gold Price & More” by Paul Robinson, Market Analyst
- “Preview for October NFPs and Outlook for the US Dollar” by Christopher Vecchio, CFA, Senior Currency Strategist
- “Pound Steadies as PMI Jump Eases Concerns About the UK Economy” by Martin Essex, MSTA, Analyst and Editor
- “EUR/USD Technical Analysis: Topping Pattern Remains Valid” by Ilya Spivak, Senior Currency Strategist
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