Market Snapshot – NFP Comes in Better Than Expected

NFP Dominates Trading

Since the middle of the week, all eyes have been on the NFP as the market turned into a consolidation mode in anticipation of the data. The data from the US has been weak over the last 2 months or so and that is why this data assumes added significance as the market waits and see if the dollar can be saved by the NFP. The NFP did ome out stronger at 209K versus the expected value of 180K and this was a good one for the dollar which has helped the dollar to strengthen across the board. The average wages also came in as per expectations. Overall a good data for the dollar which should see it recover.

Gold Prices Await the NFP As They Consolidate

The gold prices have been consolidating for much of the day with them moving up and down in a choppy manner with no specific direction. This is logical considering the fact that we are waiting for the NFP to release and this is an important piece of data and we will be seeing whether this piece of data would be able to help the dollar which has been beaten left, right and center over the past few weeks. This gives added importance to the NFP data and the fact that the ADP data came more or less along expectations, it means that the traders are unable to form a judgement on the state of the US economy at this point of time and that is why they will be looking for the NFP to do that. The gold prices are likely to break lower into the 1240 region if the NFP data comes in larger than expected while it is likely to move higher into the 1280 region if it comes out low.