Job Data Pushes the Dollar Higher
Market News Summary
European stocks fell yesterday, Wednesday, to their lowest levels in two weeks as they incurred broad losses due to investors’ aversion to riskier assets after a surprise credit rating downgrade of the United States by Fitch Ratings.
The European Stoxx 600 index declined 1.4%, touching its lowest level since July 18, and continued its second consecutive day of decline. The credit rating downgrade of the United States disrupted global stock markets and led to a decline in bond yields in the euro area.
On the other hand, the ADP National Employment Report on Wednesday showed that the US private sector added 324,000 jobs last month, which was higher than the 189,000 increase forecasted by economists.
Dollar Index (USDX)
The dollar rose yesterday after investors disregarded Fitch’s decision to downgrade the credit rating of the United States. Meanwhile, the release of data showing a larger-than-expected increase in private job numbers for July contributed to further strengthening the dollar, signaling a robust labor market.
The dollar index rose by 0.754%, reaching a new three-week high. The index had already surged 3% on July 18, rising from its lowest level in 15 months.
Pivot point: 102.25
| Resistance level | Support level |
| 102.70 | 101.95 |
| 103.00 | 101.40 |
| 103.80 | 100.65 |
Spot Gold (XAUUSD)
Gold prices stabilized near their lowest levels in three weeks on Thursday after a larger-than-expected increase in US private sector jobs in July strengthened expectations for further monetary tightening in the United States, pushing the dollar and bond yields higher.
Gold futures dropped to $1,970.90 per ounce, while the spot gold price declined to $1,935.20 per ounce.
Pivot point: 1940
| Resistance level | Support level |
| 1948 | 1926 |
| 1962 | 1918 |
| 1970 | 1904 |
Dow Jones Index (DJ30ft – US30)
The US stock indices closed sharply lower on Wednesday as investors took profits after five consecutive months of gains and in response to Fitch’s credit rating downgrade of the United States.
The Dow Jones Industrial Average declined by 1%, equivalent to around 348 points, marking its largest daily loss in approximately 4 weeks.
Pivot point: 35485
| Resistance level | Support level |
| 35645 | 35250 |
| 35880 | 35100 |
| 36035 | 34860 |
US Crude (USOUSD)
On Wednesday, oil prices dropped by 2% at settlement, despite the historic decline in crude inventories in the United States, as traders shied away from risks following the credit rating downgrade of the US government by a major rating agency.
The US Energy Information Administration reported today that US crude inventories fell by 17 million barrels last week, marking the largest weekly decline ever recorded.
US crude futures fell by $1.88, or 2.3%, to settle at $79.49 per barrel, while Brent crude futures declined by $1.71, or 2%, to settle at $83.20 per barrel.
Pivot point: 80.35
| Resistance level | Support level |
| 81.75 | 78.35 |
| 83.75 | 77.00 |
| 85.10 | 75.00 |
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