Trading day in one post 02.06.2017

Asian markets were mostly in the green on Friday.

In Asia, the Nikkei 225 jumped 1.7 percent. Australia's S&P/ASX 200 added 0.92 percent, South Korea's benchmark Kospi index was higher by 0.85 percent.

Markets in greater China were mixed. Hong Kong's Hang Seng Index rose 0.33 percent. The Shanghai Composite was down 0.26 percent and the Shenzhen Composite fell 0.636 percent.

The dollar index traded at 97.222 which was off a low of 96.903 set in the last session.

Oil prices were lower on worries about oversupply in markets. U.S. crude was down 0.5 percent at $48.12 a barrel and Brent crude was 0.4 percent lower at $50.43.

US indices closed positive on Thursday after positive data from ADP. All three major US indices closed up by more than 0.6%.

Donald Trump ended the US membership in the Paris Global Climate Conservation Agreement. This was one of the President's promises during his election campaign and it is now a fact. But this was not well accepted by most European countries and by many big companies in the United States.

Economic calendar for European and American trading sessions 02.06.2017

11:30 - UK - Construction PMI

15:30 USA - Average Hourly Earnings

15:30 USA - Nonfarm Payrolls

15:30 - USA - Trade balance

15:30 USA - Unemployment Rate

15:30 - Canada - Trade Balance

20:00 - USA - U.S. Baker Hughes Oil Rig Count

USD - The dollar did not make big changes against its cross-couples during the Asian Hours. The US currency remains under pressure in the short term as investors still expect to see Donald Trump's promises. The US tax reform is yet to happen. Yesterday, after positive data from the ADP, the dollar rose, but quickly lost positions. Today we expect NFP data at 3:30 pm and average hourly wage. It has become a habit for investors to consider the hourly payments data more important than the NFP. We remain cautious towards the US currency.

GBP - UK elections ahead. We expect the volatility of the GBP to grow, and so the speculation. Any new pre-counting has a serious impact on the strength of the pound. The latest one by YouGov showed that Theresa May will not be able to make her own office. The news were received negatively by investors. For the moment, we remain cautious on the pound crosses.

CAD - The decline in oil prices has a negative effect on the Canadian dollar. The correlation between the two instruments is strong and straightforward. Until we see an increase in the price of the black gold, we can consider that the price of CAD will also remain under pressure. For the moment, we have a negative mood to CAD.

Indices - S & P, DJIA and Nasdaq reached new peaks. Thursday's positive data for ADP had a positive impact on the indices. The positive US close also shifted to Asia, where in the early Asian hours and the 3 major US indices reached new highest peaks. Today we expect the NFP, where a big surprise can strongly affect both the indexes and the USD.

Trader Bozhidar Arabadzhiev