US indices closed higher on Friday, led by shares in the Software & Services (+2.06%), Technology Hardware & Equipment (+2.02%) and Retailing (+1.8%) sectors. On the economic data front, change in nonfarm payrolls fell to 75k in May (estimated 175k) from 224k in the previous month. The unemployment rate remained unchanged MoM at 3.6%, as expected. In other news, wholesale inventories improved by 0.8% in April (forecasted 0.7%) vs. a decline of 0.1% in March. The S&P 500 (2,873.34) stays above its 20d moving average (2,827.03 – flat slope) and crosses above its 50d moving average (2,870.48 – flat slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday. On the economic data front, change in nonfarm payrolls fell to 75k in May (estimated 175k) from 224k in the previous month. The unemployment rate remained unchanged MoM at 3.6%, as expected. In other news, wholesale inventories improved by 0.8% in April (forecasted 0.7%) vs. a decline of 0.1% in March.
The Euro was bullish against all of its major pairs with the exception of the CAD and the NZD. In Europe, the German industrial production dropped by 1.9% in April (-0.5% expected) after a 0.5% increase in March. Separately, the German trade balance excess narrowed to E17.9B in April (E19.5B anticipated) from E22.6B a month earlier. Exports slid by 3.7% while imports fell by 1.3%. According to Halifax, the UK house prices were up by 0.5% in May (flat expected) after a 1.2% rise in April.
The Australian dollar was bearish against most of its major pairs except for the JPY and USD.
Commodities
After the close of Wall Street, WTI Crude Future (JUL 19) was up $1.4 to $53.99. The contract was below its 20D MA (@ $58.53) and below its 50D MA (@ $61.38).
Gold was up $5.9 to $1341.2. The precious metal was above its 20D MA (@ $1298) and above its 50D MA (@ $1290). The 14d RSI above 70 (75.73) indicates gold was overbought.
Copper Future (JUL 19) on Comex was down 2.9c to 262.15c/lb. The contract was below its 20D MA (@ 269.08c) and below its 50D MA (@ 281.09c). In Europe, the London Metal Exchange reported its copper inventories decreased 75 tons to 211575 tons