For the bulls, Important resistance exists at still stand at 14774.00 level which is 161.8% Fibonacci extension target, and also at 15923.00 which is the 261.8% Fibonacci extension target.
For the bears, important support levels exist at 14064.00 derived from the April 29th top, also at 13830.00 where the MA50 stands now, and finally at 13960 level where the MA100 lies now.
While it is a quieter day ahead on the economic calendar, U.S nonfarm payrolls from the U.S. may influence the market. The stats for today include among others CAD Manufacturing PMI, CAD Trade Balance, US Non-Farm Employment, US Unemployment rate, and US Factory orders.
• United States major stock markets closed mostly higher on Thursday on economic recovery optimism. The number of initial jobless claims dropped to a new pandemic low, signaling a return of workers into the labor force. Nevertheless, the manufacturing activity did not exceed last month's.
• The Dow Jones gained 0.38% with Nike growing by 2.27%, while the S&P 500 jumped 0.52%. The Nasdaq 100 closed flat with 0.04% in the green led by Regeneron Pharmaceuticals rising 2.88%.
• The number of Americans filing new claims for unemployment benefits fell more than expected last week, while layoffs plunged to a 21-year low in June, suggesting the labor market recovery from the COVID-19 pandemic was gaining traction.
While job cuts are easing, a shortage of willing workers is constraining hiring amid a surge in demand following a reopening of the economy made possible by coronavirus vaccinations.
• U.S. manufacturing activity grew at a moderate pace in June, but employment contracted for the first time in seven months, likely because of rampant shortages of raw materials and labor.
The Institute for Supply Management (ISM) said on Thursday its index of national factory activity slipped to 60.6 last month, the lowest reading since January, from 61.2 in May.
• U.S. construction spending unexpectedly fell in May as gains in private homebuilding were offset by persistent weakness in outlays on non-residential structures and public projects.
The Commerce Department said on Thursday that construction spending dropped 0.3% after edging up 0.1% in April.
Important Daily Events:
• At 12:30 (GMT) CAD Building Permits m/m expected. This indicator measures the change in the total value of new building permits issued.
• At 12:30 (GMT) CAD Trade Balance also expected. This is an indicator measuring the difference in value between imported and exported goods during the reported month.
• At 12:30 (GMT) US Non-Farm Employment Change coming up. ob creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
• At 12:30 (GMT) US Unemployment Rate is due. This is an indicator that measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
• At 12:30 (GMT) US Average Hourly Earnings m/m will be announced. It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer.
• At 12:30 (GMT) US Trade Balance is also due. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.
• At 13:30 (GMT) CAD Manufacturing Purchasing Managers' Index (PMI) to be announced. This is a Survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
• At 14:00 (GMT) US Factory orders are due. It's a leading indicator of production - rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
US Indices Yesterday:
• Dow Jones +0.38%
• S&P 500 +0.52%
• Nasdaq +0.13%
Sources: Investing.com, forexfactory.com, breakingthenews.net