The yield on the benchmark 10-year U.S. Treasury note hit its highest levels since May 2011 after private payrolls data came in stronger than forecast.
The dollar was basically flat at 113.93 yen on Friday, after coming off an 11-month high of 114.55 yen the previous session.
Ten-year U.S. Treasury yields were last at 3.1949 percent, while the benchmark 10-year JGB yields sat at 0.150 percent, close to their highest since January 2016.
The dollar index was 0.1 percent higher on the day at 95.833.
The euro edged down 0.05 percent to $1.1507 after brushing a six-week low of $1.1463 during the previous day’s session.
The euro is down about 0.8 percent against the dollar this month.
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· J.P. Morgan is getting less optimistic about the trade conflict between the U.S. and China.
The firm lowered its rating for Chinese equities to neutral from overweight, predicting the escalating trade war between the countries will affect China's economy next year.
"A full-blown trade war becomes our new base case scenario for 2019," emerging market strategist Pedro Martins Junior said in a note to clients Wednesday. "There is no clear sign of mitigating confrontation between China and the US in the near term."
· The U.S. economy likely created jobs at a brisk clip in September, with the unemployment rate probably falling to an 18-year low of 3.8 percent, signaling a further tightening in labor market conditions.
Nonfarm payrolls likely increased by 185,000 jobs last month after surging 201,000 in August, according to a Reuters survey of economists. September’s anticipated job gains would match the monthly average for the past three months. The economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population.
· France’s trade deficit widened more than expected in August as aircraft exports fell and the energy bill rose, seasonally adjusted data published on Friday by the customs office showed.
France recorded a trade deficit of 5.6 billion euros ($6.45 billion), after 3.4 billion euros in July. A Reuters poll of seven economists had forecast on average a shortfall of 4.5 billion euros.
· European Central Bank President Mario Draghi met Italian President Sergio Mattarella on Wednesday pointing out the risks stemming from a negative market reaction to the country’s new budget, two Italian newspapers reported on Friday.
It was not immediately possible to have a comment from the head of state press office.
· German industrial orders surged in August, data showed on Friday, bouncing back from falls earlier in the summer and adding to evidence of resilience in the economy despite an uncertain global economic outlook.
The Federal Statistics Office said contracts for ‘Made in Germany’ goods rose by 2.0 percent after a fall of 0.9 percent in the previous month.
A Reuters poll of analysts had pointed to a rise of 0.5 percent in August.
· The European Union’s Brexit negotiators told national diplomats in Brussels late on Thursday that a divorce deal with Britain was “very close”, according to two sources present at the meeting.
The two sides are trying to push the divorce deal as well as an agreement on post-Brexit relations above the line in time for two summits of the bloc’s leaders on Oct. 17-18 and Nov. 17-18.
· Japan and the United States will hold a third round of bilateral economic dialogue when U.S. Vice President Mike Pence visits Japan in mid-November, Japanese government officials said on Friday.
During his visit, Pence will hold talks with Prime Minister Shinzo Abe and his deputy, Taro Aso, on topics ranging from trade, economic policy and North Korea, the officials said on condition of anonymity as they were not authorized to speak publicly.
· Japan’s household spending jumped in August at the fastest annual pace in three years as bigger bonuses boosted consumption, suggesting robust domestic demand could help offset ill-effects from escalating trade frictions.
Household spending rose 2.8 percent in August from a year earlier, confounding market expectations for a 0.1 percent fall and increasing at its fastest August 2015, government data showed. It was the second straight month of gains following a 0.1 percent rise in July.
· Crude Oil WTI Technical Analysis: Black Gold retreats to $74.00 a barrel as bulls get ready to new leg up to 76.00
Crude oil is in a bull trend.
Crude oil retreated near the 50-period simple moving average and $74.00 a barrel.The 50, 100 and the 200-period simple moving average are rising and widening suggesting strong bullish momentum. WTI is set to stabilize above 74.00 as bulls should lift the market towards 75.88 figure.
Main Trend: Bullish
Resistance: 75.24, 7
Support: 74.00,
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· Crude oil prices put in a Bearish Engulfing candlestick pattern on a test of resistance in the 75.00-77.31 area (August 2011 – June 2012 lows), hinting a move lower is ahead. From here, a daily close below the 72.73-88 zone opens the door for a test of the 70.05-26 region.
· Oil prices rose on Friday as traders anticipated a tighter market due to U.S. sanctions against Iran’s crude exports, which are set to start next month.
International benchmark Brent crude oil futures were at $84.98 per barrel at 0504 GMT, up 40 cents, or 0.5 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures were up 47 cents, or 0.6 percent, at $74.80 a barrel.
“Brent front-month prices are up 6 percent over the last week as it becomes increasingly apparent that Iranian exports could fall below 1 million barrels per day in November,” said U.S. bank Jefferies on Friday.
U.S. sanctions will start targeting Iran’s crude exports from November 4, and Washington is putting pressure on governments and companies globally to fall in line.
“It now appears that only China and Turkey may be willing to risk U.S. retaliation by transacting with Iran,” Jefferies said.
Reference: Reuters, CNBC, DailyFX
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