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Current Futures: Dow -39.00, S&P -4.30, NASDAQ -6.50

U.S. futures and European cash trade moved lower throughout the overnight session, as the financial market positions itself ahead of the U.S. economic release calendar.

The global markets await two very important economic reports, both notorious for their strength and capacity to move the market from one corner to the other. The two are the ECB press conference and the U.S. Non-Farm Payroll, which was scheduled one day earlier than normal because of the 4th July Holiday.

Ahead of the U.S. open, the regional European benchmarks are trading near very important swing points. The German Dax is trading just above the support area of a flag pattern on the daily chart, which in the present case, appears as a downside continuation pattern, TheLFB-Forex.com Trade Team notes. At the same time, the U.K. FTSE is trading very close to the 4300 area, which was a major swing point for the last few months of trading. 

The market expects the NFP report to show that the U.S. economy lost 360K in June, while the unemployment rate is expected to surge up to 9.6%, the highest rate of the last few decades. Any other numbers, either way, and the NFP report has the potential to create lots of volatility in the global markets. Remaining in the labor market, the weekly initial jobless claims report is expected to show that the number of people filling unemployment claims for the first time over the prior week remained above 600K.

By a large majority, markets anticipate the ECB to maintain the interest rate at 1%, there are only two out of sixty analysts surveyed on it that are looking for a move on rates. However, soon after this, currency traders will shift their focus towards Mr. Trichet’s press conference, where he is expected to reiterate the same themes as in the last few meetings: global caution is still required, the need to anchor inflation expectations and the fact that central banks need to search for sustainable exit strategies.

Overnight, the U.K. FTSE fell 30.10 points (0.70%) to 4,305.40, while the German Dax declined 76.55 points (1.56%) to 4,828.89

Crude oil for July delivery was recently trading at $68.30 per barrel, lower by $1.00. Thursday is the third consecutive day of declines, but so far, the $68.00 area has managed to hold as support.

Gold for July delivery was recently trading lower by $4.70 to $936.60. Currently, gold is caught trading between the 20 and the 50-day moving averages. 

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