US Wrap

US equity markets pressed higher for another session as all the attention now shifts to the US employment report due out Friday morning.

Yesterday, we saw another improvement in jobless claims data with new claims falling under 500K. On the back of huge stimulus and easy monetary policy, the data points are continuing to improve.

On the flip side, US debt and unfunded liabilities, in general, have now spiralled to levels that are literally off the charts. So while jobs slowly improve, inflation is soaring and commodities continue to move higher.

We saw GOLD and SILVER make another leg higher yesterday and the metals will be ones to continue to watch in the coming months.

The Data Agenda

The key focus of today’s session will be the US employment report which is expected to show another big jobs increase.

The official NFP number is expected to be 978K new jobs created last month, with the jobless rate falling to 5.8%.

Canada will also release their jobs data, but the numbers are far worse with a -175K loss, as many areas are still experiencing lockdowns.

Forex Signal Update

The FX Leaders Team had a quiet session ahead of the NFP data, with two signals in the red and four signals currently open.

XRP – Active Signal

XRP was in focus yesterday, but we saw the case with the SEC get delayed again until next week. At this stage, it appears this is now just a time-waster. However, there is no doubt that this case will set the standard for the entire sector and send waves, if and when a settlement is reached. Interestingly, the SEC has bought in a law firm that specialises in settlements.

EUR/USD – Active Signal

The EUR/USD has made a small break to the upside, however, our short signal remains open.

Cryptocurrency Update

While Dogecoin gave up some of its gains yesterday and BTC remained flat, there was a fair bit of attention on what SEC boss Gary Gensler had to say.

Gensler, who is the new SEC boss that is also taking on XRP, noted that Congress should examine a “regulatory framework” for crypto exchanges.

This is clearly the narrative that we keep seeing pushed in the media at the moment and therefore know that something is in the works. This is a real game-changing moment for the entire sector and we must pay attention. The biggest mistake you can make is to assume the likes of Bitcoin and even ETH are decentralised when they are very clearly China-based.