CFD Markets News and Forecasts — 06-10-2017

Non-Farm Employment Change (NFP) was relatively below that which was expectable.

This is one of the most used and useful indicators to understand the economy's health and it is used to forecast the gross domestic product (GDP).

However, even with the low results today, the dollar has not lost its value because other news that came out at the same time with the NFP and it benefits the dollar's value.

Unemployment Rate declined to 4.2 percent last month (September) in U.S.

Total inventories of merchant wholesalers, except manufacturers' sales branches and offices, after adjustment for seasonal variations but not for price changes, were $608.1 billion at the end of August, up 0.9 percent from the revised July level. Total inventories were up 4.5 percent from the revised August 2016 level. The July 2017 to August 2017 percent change was revised from the advance estimate of up 1.0 percent to up 0.9 percent.

The August inventories/sales ratio for merchant wholesalers, except manufacturers' sales branches and offices, based on seasonally adjusted data, was 1.28. The August 2016 ratio was 1.32.

EUR/USD: 1.1850(585 млн), 1.1745-50(181 млн), 1.1730-35(141 млн), 1.1700(985 млн), 1.1665(895 млн), 1.1650-55 (960)

USD/JPY: 111.00(330 млн), 112.00(880 млн), 113.00(615 млн)

AUD/USD: 0.7920-25(360 млн), 0.7845-50 (360 млн),0.7800-05(116 млн), 0.7650(295 млн)

U.S. stock-index futures were lower on Friday as investors assessed Employment Situation Report for September.

Global Stocks:

Nikkei 20,690.71 +62.15 +0.30%

Hang Seng 28,458.04 +78.86 +0.28%

Shanghai -

S&P/ASX 5,710.68 +58.91 +1.04%

FTSE 7,522.87 +14.88 +0.20%

CAC 5,369.89 -9.32 -0.17%

DAX 12,974.50 +6.45 +0.05%

Crude $49.72 (-2.11%)

Gold $1,270.80 (-0.18%)

(company / ticker / price / change ($/%) / volume)

Employment was essentially unchanged in September (+10,000 or +0.1%). The unemployment rate remained at 6.2%, matching the low of October 2008.

Gains in full-time employment (+112,000) in September were mostly offset by declines in part time (-102,000). In August, there was a decline in the number of people working full time and an increase in part time.

In the 12 months to September, employment rose by 320,000 (+1.8%), spurred by gains in full-time employment (+289,000 or +2.0%). Over this period, the number of hours worked increased by 2.4%.

Overall employment grew by 43,000 (+0.2%) in the third quarter, slower than the 0.6% growth rate in the second quarter and the 0.5% growth rate of the first quarter of 2017.

From August to September, employment increased for people aged 55 and older, while it fell among men aged 25 to 54.

For the second consecutive month, Ontario was the lone province with a notable employment gain. There were employment declines in Manitoba and Prince Edward Island.

More people worked in educational services as well as wholesale and retail trade in September, while employment fell in information, culture and recreation.

In September, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents to $26.55. Over the past 12 months, average hourly earnings have increased by 74 cents, or 2.9 percent. In September, average hourly earnings of private-sector production and nonsupervisory employees increased by 9 cents to $22.23.

The unemployment rate declined to 4.2 percent in September, and total nonfarm payroll employment changed little (-33,000), the U.S. Bureau of Labor Statistics reported today. A sharp employment decline in food services and drinking places and below-trend growth in some other industries
likely reflected the impact of Hurricanes Irma and Harvey.

The unemployment rate decreased by 0.2 percentage point to 4.2 percent in September, and the number of unemployed persons declined by 331,000 to 6.8 million. Both measures were down over the year.
Among the major worker groups, the unemployment rates for adult men (3.9 percent) and Blacks (7.0 percent) declined in September. The jobless rates for adult women (3.9 percent), teenagers (12.9 percent), Whites (3.7 percent), Asians (3.7 percent), and Hispanics (5.1 percent) showed
little change. The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged in September at 1.7 million and accounted for 25.5 percent of the unemployed.

The value of retail trade decreased by 0.3% in August 2017 compared with the previous month (-0.4% for both food goods and non-food goods) and decreased by 0.5% compared with August 2016 (+0.8% for food goods and -1.5% for non-food goods).

Despite short-term variability, the underlying pattern in retail trade remains flat as in the three months to August 2017 the value is estimated to have decreased by 0.1, whilst the volume is estimated to have increased by 0.1.

The volume of retail trade decreased by 0.4% compared with July 2017 (-0.4% for food goods and -0.5% for non-food goods) and decreased by 1.0% from the same month a year earlier (0.0% for food goods and -1.8% for non-food goods).

EUR/USD: 1.1850(585 m), 1.1745-50(181 m), 1.1730-35(141m), 1.1700(985 m), 1.1665(895 m), 1.1650-55 (960 m)

USD/JPY: 111.00(330 m), 112.00(880 m), 113.00(615 m)

AUD/USD: 0.7920-25(360 m), 0.7845-50 (360 m),0.7800-05(116 m), 0.7650(295 m)

House prices in the last three months (July-September) were 1.4% higher than in the previous three months (April-June). This is the fastest price growth, on this measure, since February.

Prices in the three months to September were 4.0% higher than in the same three months a year earlier. The annual rate in September is higher than in August (2.6%) and at its highest growth rate since February.

House prices rose by 0.8% between August and September, following a 1.5% increase in August.

Russell Galley, Managing Director, Halifax Community Bank, said: "The annual rate of growth has picked up for the second consecutive month, rising from 2.6% in August to 4.0% in September. The average house price is now £225,109 - the highest on record. House prices in the three months to September were 1.4% higher than in the previous quarter, the fastest quarterly increase since February."

EUR/USD

Resistance levels (open interest**, contracts)

$1.1852 (3199)

$1.1807 (2988)

$1.1756 (717)

Price at time of writing this review: $1.1694

Support levels (open interest**, contracts):

$1.1648 (3761)

$1.1599 (4307)

$1.1549 (1535)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date October, 6 is 110295 contracts (according to data from October, 5) with the maximum number of contracts with strike price $1,1800 (7102);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3302 (2379)

$1.3209 (1929)

$1.3154 (1907)

Price at time of writing this review: $1.3075

Support levels (open interest**, contracts):

$1.3045 (1497)

$1.2999 (2389)

$1.2950 (2518)

Comments:

- Overall open interest on the CALL options with the expiration date October, 6 is 39418 contracts, with the maximum number of contracts with strike price $1,3700 (3027);

- Overall open interest on the PUT options with the expiration date September, 8 is 45307 contracts, with the maximum number of contracts with strike price $1,3150 (3762);

- The ratio of PUT/CALL was 1.15 versus 1.17 from the previous trading day according to data from October, 5

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

Total labor cash earnings in Japan increased at a faster-than-expected pace in August, preliminary report from the Ministry of Health, Labor and Welfare, cited by rttnews.

Gross earnings climbed 0.9 percent year-over-year in August, faster than the 0.4 percent rise in July, which was revised from a 0.3 percent fall estimated previously.

Economists had expected a 0.5 percent rise for August.

Contractual gross earnings grew 0.6 percent annually in August and special cash earnings rose notably by 6.1 percent.

Real cash earnings edged up 0.1 percent in August, the same rate of increase as in the preceding month.

Based on provisional data, the Federal Statistical Office (Destatis) reports that price-adjusted new orders in manufacturing had increased in August 2017 a seasonally and working-day adjusted 3.6% on the previous month. For July 2017, revision of the preliminary outcome resulted in decrease of 0.4% compared with June 2017 (primary -0.7%). Price-adjusted new orders without major orders in manufacturing had increased in August 2017 a seasonally and working-day adjusted 2.5% on the previous month.

In August 2017, domestic orders increased by 2.7% and foreign orders by 4.3% on the previous month. New orders from the euro area were down 1.0%, new orders from other countries increased 7.7% compared to July 2017.

European stocks ended a volatile session mainly higher on Thursday after Madrid suspended a parliamentary session in Catalonia in an attempt to block the region from declaring independence. The Stoxx Europe 600 index SXXP, +0.16% ended 0.2% higher at 391.03, rising for a 10th out of the past 11 session.

U.S. stock-market indexes posted solid gains and closed at all-time highs on Thursday after Congress passed a budget resolution-a step seen as setting the stage for an overhaul of the tax code.

Stock markets in Asia posted broad gains Friday morning as Hong Kong's benchmark index briefly reached its best level in a decade and Japan's Nikkei moved closer to levels last seen in 1996. The latest leg higher for stock markets, including new records in the U.S., has been helped by fresh comments from central bankers interpreted in support of a December interest-rate increase. Fed-fund futures now show a 87% probability of an increase then, versus 78% on Tuesday, according to CME Group data.