Midday Market Update: Canadian Employment data in focus

The markets were calm early European session as the European docket carried light data. Traders are anticipating Canadian Employment data and US Baker Hughes Oil rig count later in the New York session. Major market drivers are mainly expected next week as the US will release its most anticipated CPI and retail sales data, along with UK CPI data, UK GDP, and Japanese GDP data.

The EURUSD was downbeat as the dollar gained ground ahead of Inflation data.  Bulls are currently pushing for the 1.0800 psychological level although upside gains are capped by the 1.0815 level. A break above that level could see the 1.0900 handle in the near term and a failure to break above that level could trigger selling towards the 1.07238 support. However, hawkish ECB rhetoric or weaker-than-expected US data could push it higher.

The CADJPY was slightly up by +0.03 ahead of Canadian Employment Data. The rally in oil prices helped underpin the sentiment of the pair as bulls target the 16-year high. Japanese Yen continues to tumble against major assets as BoJ maintains negative interest rates. To the upside, 111.180 remains a key resistance level and near-term support is at 110.419. 

US stock futures climbed higher as the week closed as the focus shifted to US inflation data next week. US30 was slightly up by +0.09% as bulls approached the 38783.42 resistance level after finding support at 38542.59 and a break above that level could push targets toward the 38900 level. US100 soared by +0.31% after breaching the 17685.9 level and the next target is at the 17900 level. US500 traded higher by +0.18% after breaking above the 4975.4 and the next hurdle is at 5008.9.

European stock futures were flat following unchanged data in Europe. UK100 was slightly lower by -0.06% towards a 10-day low at 7596.3 and a hold above that level could cause bulls to rally towards the 7651.0 high. CAC40 appreciated by +0.30% as bulls rebounded from the 7555.4 support and 7702.9 remains a key barrier to the upside. DAX was up by +0.10% as the index traded between a tight range between the 17050.04 high and 16889.32 low. In commodities, oils markets wobbled as investors eye OPEC+ meetings next week. Both benchmarks experienced a 3-day rally after bouncing off key support levels. The USOIL faces a hurdle at $79.00, while UKOIL grapples with the $84.04 level. A breakout could signal further bullish momentum, but rejection might trigger pullbacks.