This is news of yesterday :) but as it is related to NFP for today so I am uploading it here:
Forbes - Forex Market Muted Before NFP Friday :
It’s no surprise to witness a range bound multiple asset session ahead
of tomorrow’s highly anticipated economic release, the U.S. nonfarm
payrolls (NFP), and today’s Bank of England (BoE) and European Central
Bank (ECB) rate announcements. The Independence Day holiday in the U.S.
has already encouraged many to wade to the sidelines, as they prefer to
trade in more liquid times. In today’s North American shortened trading
session, price action will be dominated by entities not bothered by a
liquidity premium. They are interested in adding to or paring positions
after what ECB President Mario Draghi has to say in his routine press
conference after the ECB rate notice.
Just to remind that we are going to have the following news event today :
2013-07-05 12:30 GMT | [USD - Non-farm Payrolls]
if actual > forecast = good for currency (for USD in our case)
U.S. Employment Rises By More Than Expected In June :
Employment in the U.S. increased by more than anticipated in the
month of June, according to a report released by the Labor Department on
The report said non-farm payroll employment increased by 195,000 jobs in June, matching the revised job growth seen in May.
had been expecting employment to increase by about 160,000 jobs
compared to the addition of 175,000 jobs originally reported for the
Despite the stronger than expected job growth, the
unemployment rate came in unchanged at 7.6 percent. The unemployment
rate had been expected to edge down to 7.5 percent.
MetaTrader Trading Platform Screenshots
EURUSD, M5, 2013.07.05
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8 Oil Stocks With High Yields And Low Valuations :
It has become more of a challenge to find stocks trading at attractive
valuations. One group that recently caught my eye is the major
integrated oil companies.
Although they may be market laggards at the moment, I like the
long-term prospects for the big oil companies. Demand for oil (and
natural gas, which many of them produce in addition to oil) is likely to
keep rising for the foreseeable future, particularly in the developing
countries. And whether oil prices go up or down, the major oil companies
always seem to find a way to grind out substantial profits.
Finally, the very fact that the oils often do move independently of
the stock market as a whole makes them attractive investments. An oil
stock or two can be a useful “anchor to windward” when a bear market
eventually rolls around.
The stocks discussed below are all large international oil producers.
They all trade at attractive valuations and pay generous dividends.
Dollar and Yields Soar after Payrolls :
The U.S. dollar ripped higher against all of the major currencies after
the non-farm payrolls confirmed that the Federal Reserve is on track to
taper asset purchases this year. Going into this key release, investors
were looking for confirmation that the economy could handle a reduction
in stimulus and they also wanted evidence that the labor market is
improving like the Fed predicts. While the unemployment rate held steady
at 7.6%, stronger than expected job growth and upward revision to the
May report gave everyone the confidence that the jobless rate will
slowly decline and meet the central bank’s lowered expectations.
With labor market numbers confirming that the U.S. economy is performing
well enough for the central bank to reduce stimulus, we expect a
further rally in the dollar. As U.S. yields head towards 3%, we should
not only see more investors cut their dollar funded carry trades but
Japanese companies hedging against a rising yen (by selling dollars)
will soon find those hedges too expensive to bear. We are also seeing
more investors buy dollars outright and all of these factors should help
to drive the EUR/USD below 1.28, USD/JPY to 103 and the GBP/USD below
USD Today - Is gold cheap enough to buy yet? :
You're cheap. You're so cheap that your clothes went out of style in the
Roosevelt administration. Teddy Roosevelt's administration. Cheap. When
someone asks you for three cheers, you only give two.
So when you look at the price of gold and notice that it's nearly 35%
off its record high, you're intrigued. Is it cheap enough to buy yet?
While there are several ways to answer that question, the answer is
probably "not quite yet."
Gold currently sells for about $1,220 an ounce, down sharply from its
2011 high of $1,895. Whether that's cheap or not is hard to say, because
putting a price on the intrinsic value of gold isn't easy. Unlike
stocks or bonds, gold doesn't pay any interest or have any earnings,
which is how people evaluate many investments.
For patient stock-pickers, gold mining stocks may have some prospects.
It's certainly better to buy them when they're beaten down than when
they are on the rally. The question is whether or not they have been
beaten down so much that they're candidates for reverting to the mean.
Right now, the stocks may be cheap, but the metal itself might not be
cheap enough yet.
EUR/USD weekly outlook: July 8 - 12 :
Japan Data On Tap For Monday :
Japan is scheduled to release a raft of data on Monday, highlighting
a light day for Asia-Pacific economic activity. On tap are May figures
for current account, as well as June numbers for bank lending,
bankruptcies and the eco watchers survey.
The current account is
expected to reflect a surplus of 600.0 billion yen, down from the 750.0
billion yen surplus in April. Bank lending in May was up 2.1 percent on
year, while lending including trusts added an annual 1.8 percent.
Bankruptcies were down 9.0 percent on year in May, while the eco
watchers outlook survey saw a score of 56.2 and the current survey came
in at 55.7.
Australia will see the June results of the job advertisement survey from ANZ Bank; in May, job ads dipped 2.4 percent on month.
2013-07-07 23:50 GMT | [JPY - Current Account]
actual > forecast = good for currency (for JPY in pour case)
Japan Has Y540.7 Billion Current Account Surplus In May :
Japan posted a current account surplus of 540.7 billion yen in May,
the Ministry of Finance said on Monday - remaining in the green for the
fourth straight month after three consecutive months of deficit.
The headline figure missed forecasts for a surplus of 600.0 billion yen following the 750.0 billion yen surplus in April.
surplus jumped 58.1 percent on year, also shy of expectations for a
jump of 91.6 percent following the 100.8 percent spike in the previous
The trade balance reflected a deficit of 906.7 billion yen
versus forecasts for a shortfall of 902.1 billion yen following the
818.8 billion yen deficit in the previous month.
ECB cannot solve euro zone crisis, says Jens Weidmann, Bundesbank chief :
FRANCE: The European Central Bank cannot solve the euro zone crisis, Bundesbank
chief Jens Weidmann told economists on Sunday, pressing the bloc's
governments to get their economies in shape and tighten their fiscal
rules. Weidmann addressed an economists' conference in
Aix-en-Provence, southern France, only three days after the ECB broke
with precedent by declaring that it intended to keep interest rates at record lows for an extended period and may yet cut further.
"Monetary policy has already done a lot to absorb the economic
consequences of the crisis, but it cannot solve the crisis," Weidmann
said in his speech. "This is the consensus of the Governing
Council. The crisis has laid bare structural shortcomings. As such, they
require structural solutions." Weidmann, widely recognised to
be the most hawkish member of the ECB's 23-man Governing Council, does
not want the bank to intervene too strongly in tackling the bloc's
economic crisis, thereby allowing governments to soft-pedal reforms.
Greece Strikes Deal With Troika On Bailout Tranche :
The Greek authorities reached an accord with the troika on economic
reforms that are required to unlock next tranche of bailout fund, the
European Commission said in a joint statement on Monday, just hours
ahead of the Eurogroup meeting.
The troika that comprises the
European Union, the European Central Bank and the International Monetary
Fund, agreed that the macroeconomic outlook remains broadly in line
with program projections, with prospects for a gradual return to growth
However, the outlook remains uncertain, it said. Eurozone
ministers at their meeting in Brussels later today will formally decide
whether to release the next tranche of EUR 8.1 billion aid to Greece.
aid funds are crucial for Athens to repay its bonds in August. The
authorities committed to a number of tax reforms to secure the fund.
Minister Antonis Samaras closed down the national broadcaster last
month, a move that met with widespread protest. Greek officials on
Sunday said 25,000 public sector workers would be put in a "mobility
scheme". They would either be found new jobs or laid off by the end of
Concluding the review mission to Greece, the troika
said "policy implementation is behind in some areas." The agreement does
not include a temporary reduction in the value added tax on