The US dollar has been consolidating its gains as tension mounts toward the US Non-Farm Payrolls, in typical jobs Friday trading. Economists expect the first coronavirus-impacted jobs figures to show a loss of only 100,000 jobs.
GBP/USD bears the burden of broad US dollar strength while waiting for fresh impulse, while EUR/USD has completed a fall of more than 50% from the 1.0640-1.1150 rise, as it awaits the critical US data for the next direction. USD/JPY was rallying on solid US stocks and a spike in oil prices overnight.
Oil remains depressed below $24.00 as traders fail to cheer hopes for production cut. WTI fails to keep buyers hopeful as fears of coronavirus outbreak renew. China’s Caixin Services PMI came in positive, US President Donald Trump reiterated hopes for Saudi-Russian pact for an oil production cut.
Gold prices were down on Friday even as the U.S. reported a record number of unemployment claims the day before. Investors flocked to the yellow metal, regarded as a safe haven, as U.S. stock markets fell. But gold lost its lustre as Asian stock markets opened with gains on the back of surging oil prices.
In the European session the Final Services PMI reports from across the Euro area economies will start trickling in from 07:15 GMT and on. The UK Service PMI will drop in at 08:30 GMT followed by the Eurozone Producer Price Index due at 09:00 GMT.
The US Non-Farm Payrolls data for March, in the face of the virus impact on the country’s job market will hog the limelight in the NA session. The data will be reported at 12:30 GMT, followed by the Markit and ISM US Services PMIs around 14:00 GMT. The Baker Hughes US Oil Rig Count data due at 17:00 GMT will provide some fresh impetus on oil traders.