Global Equities Continue Slide In The Midst Of Mixed Signs from Jobs and Sales

  • A strengthening US dollar - together with weaker equity prices - helped pull down oil prices as investors abandoned oil as a hedge against the falling dollar.
  • The dollar recovered for the third straight day against major rivals from its lowest levels this year. Caution also set in ahead of the closely-watched U.S. release of the July non-farm payrolls report.
  • The Sterling fell from near the highest level against the dollar since October and dropped versus the euro as the Bank of England increased its asset-purchase plan on concern the recession is deeper than previously anticipated.
  • Asian markets fell Friday after Wall Street's overnight decline on concern a U.S. government employment report might show worse-than-forecast July job losses. Despite the declines, most major Asian indexes were still up for the week, extending a rally that began in March on hopes the global economy might be emerging from its worst slump since the 1930s.

Currency to watch out for: EURUSD & GBPUSD

  • The EURUSD pivot point is at 1.4320 with a preference to enter into long positions at 1.4330
  • The GBPUSD pivot point is at 1.6685 with a preference to enter into long positions at 1.6695

Today's calendar and market movers:

  • German Industrial Output month on month expected to increase to 0.7%
  • US Non-Farm Payrolls expected to come in at -320 k
  • US Unemployment Rate To Increase To 9.6%
  • CAD Unemployment Rate To Increase To 8.8%

Stocks:

  • US stocks slip, even as weekly jobless claims ease, however retail sales tumble for the 11th straight month, all of which sets up to make today's  jobs report even more interesting.
  • As of 06:30 GMT the Nikkei is at 0.23% and the Hang Seng at -1.6%