Cash flows faded at the beginning of the last day of the week. Futures in the European markets indicate a flat opening in anticipation of US labor market data. Investors will also listen to trade talks and oil traders will wait for the final report from the OPEC meeting held yesterday.
Smart money is shifting to more risky assets for now, with the yen and gold inferior, the euro holding positions, the US dollar unchanged. Sentiment remains prone to risk on, and at least that’s how we expect it to hold off until the data or any news from China or the US comes out. Oil is still looking for direction, and after the meeting yesterday there was no clarification of its consequences. A final agreement report is expected later today. We have a lot of rumors and mixed news at this stage. The pound remains strong after positive expectations for the 12th UK elections.
Today, we will expect the usual pre-NFP silence before the report, which will be the main catalyst of the day, so that markets will concentrate on data sooner, not so much with possible news around the negotiations, unless it is extremely surprising.
Trader Martin Nikolov