Markets slipped into the pre-NFP consolidation mode on early Friday, following a turnaround on Thursday. That said, the US Dollar fades the previous day’s recovery from the key moving average amid mixed bias about the Fed while sentiment remains cautiously optimistic due to China stimulus measures.

Gold price edges higher but hesitates in benefiting from China’s multiple steps to infuse market liquidity and defend the Yuan. Further, Crude oil refreshes a three-week high as China news joins geopolitical and natural challenges to the energy supplies.

Elsewhere, major currency pairs remain sidelined but AUDUSD drops the most among the G10 pairs despite upbeat China Caixin Manufacturing PMI, which may be due to the downbeat Aussie data. However, the USDJPY bucks the trend and prints mild losses amid the hawkish BoJ bias.

Markets slipped into the pre-NFP consolidation mode on early Friday, following a turnaround on Thursday. That said, the US Dollar fades the previous day’s recovery from the key moving average amid mixed bias about the Fed while sentiment remains cautiously optimistic due to China stimulus measures.

Equities in the Asia-Pacific region trade mixed while tracing Wall Street and an indecisive pattern of the US stock futures.

BTCUSD and ETHUSD lack clear directions after declining heavily in the last two consecutive days amid fears that the US SEC won’t take the latest defeats from Ripple and Grayscale on a lighter note.

Following are the latest moves of the key assets:

  • Brent oil pokes the previous monthly high, which was the highest since late January, as bulls attack $87.60 by the press time.
  • Gold price seesaws around the key upside hurdle around $1,945 while preparing for the second consecutive weekly gain.
  • USD Index fades the previous day’s recovery from the 200-DMA despite lacking momentum around 103.50 of late.
  • Wall Street benchmarks closed mixed and so did the Asia-Pacific stocks, despite China gains. That said, equities in Europe and the UK edge lower by the press time.
  • BTCUSD stays depressed at around $26,000 while ETHUSD seesaws near $1,650 at the latest.

Pre-NFP trading lull limits market moves

Although China announced heavy measures to avoid a slowdown in the economic recovery, the market sentiment remains dicey as the previous day’s upbeat US inflation and employment clues suggest the Fed can keep the rates higher for longer. Also challenging the sentiment, as well as the market moves, could be the concerns that Beijing may not be able to defend the previous economic recovery with the latest measures amid global geopolitical tensions.

Elsewhere, fears that the US SEC can delay the spot Bitcoin ETF approvals and the cautious mood ahead of the Ether update seem to prod the BTCUSD and ETHUSD prices even as the US Dollar struggles to defend the previous day’s gains.

  • Strong buy: USDCAD
  • Strong sell: ETHUSD, GBPUSD, Gold
  • Buy: USD Index, Nasdaq, USDJPY

It’s all about US employment…

By Ari Rabinovitch

JERUSALEM (Reuters) -The Israeli military said on Saturday it had seen a “significant movement” south of Palestinian civilians, a day after ordering Gaza City residents to flee, as Israel’s prime minister promised further retaliation for Hamas’ rampage last week.

U.S. President Joe Biden said consultations were under way with regional governments on the humanitarian crisis in Gaza as trapped Palestinians endured a power blackout and shortages of food and water amid fierce Israeli bombing.

Israel has vowed to annihilate Hamas for the attack a week ago, in which its fighters killed 1,300 Israelis, mainly civilians, and seized scores of hostages.

Israel has since put the Hamas-run Gaza Strip, home to 2.3 million Palestinians, under a total siege and bombarded it with unprecedented air strikes. Gaza authorities say 1,900 people have died.

On Friday, more than one million residents of northern Gaza received a notice from Israel to flee south within 24 hours, a deadline that passed at 5 a.m. (0200 GMT).

“We have seen a significant movement of Palestinian civilians towards the south,” Israeli military spokesperson Lieutenant Colonel Jonathan Conricus told a video briefing early on Saturday. He did not mention the deadline and did not take questions.

“Around the Gaza Strip, Israeli reserve soldiers in formation (are) getting ready for the next stage of operations. They are all around the Gaza Strip, in the south, in the centre and in the north, and they are preparing themselves for whatever target they get, whatever task.”

“The end state of this war is that we will dismantle Hamas and its military capability and fundamentally change the situation so that Hamas never again has the ability to inflict any damage on Israeli civilians or soldiers.”

Hamas vowed to fight to the last drop of blood and told residents to stay.

An Israeli military spokesperson said on Friday tank-backed troops had mounted raids to hit Palestinian rocket crews and gather information on the location of hostages, the first official account of ground troops in Gaza since the crisis began.

“We are striking our enemies with unprecedented might,” Israeli Prime Minister Benjamin Netanyahu said in a rare statement televised after the Jewish Sabbath began on Friday. “I emphasise that this is only the beginning.”

Tens of thousands of Palestinians were estimated to have headed south from northern Gaza after the Israeli order, according to the United Nations, which said more than 400,000 Palestinians had been internally displaced due to hostilities before the directive.

Many others, however, said they would stay. “Death is better than leaving,” said Mohammad, 20, outside a building smashed by an Israeli air strike near the centre of Gaza.

Mosques broadcast the message, “Hold on to your homes. Hold on to your land.”

The United Nations and other organisations warned of a disaster if so many people were forced to flee, and said the siege should be lifted to let in aid.

“We need immediate humanitarian access throughout Gaza, so that we can get fuel, food and water to everyone in need. Even wars have rules,” U.N. Secretary General Antonio Guterres said on Friday.

Biden, in a speech at a Philadelphia shipping terminal, said addressing the humanitarian crisis was a top priority. U.S. teams in the region were working with Israel, Egypt, Jordan, other Arab governments and the U.N., he said.

“The overwhelming majority of Palestinians had nothing to do with Hamas and Hamas’ appalling attacks,” Biden said. “And they’re suffering as a result as well.”

U.N. spokesperson Stephane Dujarric said it was impossible for Gazans to heed Israel’s order to move south without “devastating humanitarian consequences”, prompting a rebuke from Israel that the U.N. should condemn Hamas and support Israel’s right to self-defence.

“The noose around the civilian population in Gaza is tightening,” U.N. aid chief Martin Griffiths wrote on social media. “How are 1.1 million people supposed to move across a densely populated war zone in less than 24 hours?”


Mahmoud Abbas, president of Hamas rival Palestinian Authority, told U.S. Secretary of State Antony Blinken in Jordan the forced displacement would constitute a repeat of 1948, when hundreds of thousands of Palestinians fled or were driven from what is now Israel. Most Gazans are descendants of such refugees.

Gaza is one of the most crowded places on earth, and for now there is no way out. In addition to Israel’s blockade, Egypt has resisted calls to open its border with Gaza.

U.S. Defence Secretary Lloyd Austin met Israeli Defence Minister Yoav Gallant on Friday. Austin said military aid was flowing into Israel but that this was the time for resolve and not revenge.

“The path will be long, but ultimately I promise you we will win,” Gallant said.

Blinken met King Abdullah in Jordan on Friday as well as Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank but lost control of Gaza to Hamas in 2007. Blinken later flew to Qatar, a U.S. ally with influence among Islamist groups.

In the West Bank, demonstrators supporting Gaza fought gun battles with Israeli security forces. Palestinian officials said 16 people were shot dead.

There have also been fears of hostilities spreading, including to Israel’s northern border with Lebanon, where clashes this week have already been the deadliest since 2006.

Reuters video journalist Issam Abdallah was killed on Friday while working in southern Lebanon by missiles fired from the direction of Israel, according to another Reuters videographer on the scene. Six other journalists were injured.

Lebanese Prime Minister Najob Mikati and a Hezbollah lawmaker blamed the incident on Israel. Israel’s U.N. envoy said it would investigate what had happened in the area.

“We always try to mitigate and avoid civilian casualties,” said the envoy, Gilad Erdan. “Obviously, we would never want to hit or kill or shoot any journalist that is doing its job.”