U.S. nonfarm payroll in February increased 313,000 jobs on Friday, consequently NASDAQ rose more than 100 points and closed the historical record high at 7,560.81 points. This factor may support Asian stock markets to open higher on Monday. However, I am afraid that U.S. economy added more jobs in February may just the temporary factor to support market as unemployment change increased and hourly earnings decreased. These indices may show the slower down of U.S. economy.
Euro fell lower after ECB chair raised caution on inflation in European countries. ECB may increase QE, if needed to stimulate economic and inflation. In my view, EUR/USD may edge lower than 1.2200 points, if it breaks the support line at 1.2281points. Today greenback may hold steady, because about 80% of investors believe that Fed would increase interest rate in March. The higher nonfarm payroll may support these sureness moods. Therefore, gold price may edge lower than 1,320USD. I suggest 1,310 points as the support line for gold.
The US Securities and Exchange Commission (SEC) announced it will require digital asset exchanges to register with the federal agency. Cryptocurrencies fell because of the regulation fear. Bitcoin price may fall to 7,100USD due to the conclusion the reversal pattern “double top”. I consider if cryptocurrencies would be regulated and countries create rules to regulate these assets, prices may drop in a short-term.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.