Oil Prices Declines Materially & Markets Await Non-Farm Payroll

Oil Prices Declines Materially & Markets Await Non-Farm Payroll

On Thursday, the Greenback declined once again vs. a basket of major currencies as risk appetite increased. Meanwhile, the U.S. dollar waits the US Non-Farm Payroll (NFP), which will be released today, as the U.S. economy could add 185k jobs in April and the unemployment rate could increase to 4.6% from 4.5%.

Elsewhere, the House agreed yesterday to cancel key parts of the Affordable Care Act (Obamacare) and replace them with new provisions. The vote, 217 to 213, which was one more "yes" vote than was needed for passage.

  • The dollar index (DXY), which measures the greenback against a basket of currencies, settled below 98.50, in anticipation of the U.S. non-farm payroll data.

The precious metal failed to pare its losses, despite a weak dollar (owing to increased risk appetite) and the decrease of political uncertainty in Europe. The precious metal fell to support level of $1,225 per ounce and could be affected widely by today’s non-farm payroll data as a higher than expected reading could push the yellow metal to $1,280.

Euro pared its losses yesterday backed by expectations that the independent candidate Emmanuel Macron will win the second round of France's presidential election on Sunday. Technically, the common currency could touch $1.10 against the greenback during the day, while moves remain subject to today’s non-farm payroll data.

Oil prices have fallen materially yesterday to their lowest since late November as worries about global oversupply erased most of the gains that followed OPEC's output cut deal. U.S. crude fell as much as 5% after OPEC delegates downplayed the chance that their organization and other producing countries would extend their output cut deal during their next meeting on 25th May.

The most important economic events:

  • USD Unemployment Rate (APR): (GMT 12:30) – Important – Forecast (4.6%) – Previous (4.5%).
  • USD Change in Non-farm Payrolls (APR): (GMT 12:30) – Important – Forecast (190k) – Previous (98k).
  • USD Fed's Yellen Speaks at Brown University: (GMT 17:30)

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