Morning Brew February 3 2023
Senior Relationship Manager
Summary: Massive Moves ahead of the Non Farm Payroll
Equities rose on dovish ECB and BoE while both Euro and the Pound lost value – Boosting the Dollar.
The GER40 is trading at 15470 after topping 15500, the US500 is at 4150, US 30 34030and the US Tech 100 at 12600.
All big three, Apple, Amazon as well as Alphabet fell short of expectations and shares dropped after the bell. Apple and Alphabet fell more than 3% and Amazon more than 4%.
Gold and Silver fell to where we were just ahead of the FOMC, both failing to break their respective resistance at 1960 and 24.50 – Now 23.50 and 1916. EURUSD is now trading 1.0900 after topping 1.10, GBPUSD 1.2220 after 1.2400
Today, International PMI (IT 9:45, FR 9:50, DE 9:55, EU 10 and US 15:45) will be important, EU Producer Prices at 11:00 and US Non farm Payroll at 14:30.
The Expectation is for 185k hirings after 223k in January, the unemployment rate at 3.6% after 3.5% and average earnings up 0.3%. While the initial market reaction is usually based on the headline Non Farm Payroll, it is common the other numbers then alter the reaction.
The close levels for the week will be rather intersting.