The first Friday of every month always feels like when I was at the sports carnival at school, lined up at the starting blocks ready for the 100 meters sprint. You know what the expectations are, you know what the most likely result could be but then one kid falls and before you know it the kid with two left feet has crossed the finish line first and we see a completely unexpected result. Well feels like that race. Everyone is ready for some positive news finally and then Trump sneezes and before you know it he has an executive order against TikTok and WeChat. Now you have people scrambling around looking to see where they can find some kind of solid data that will help them predict the outcome. Welcome to NFP August 2020 faulks.
Trumps not so surprising decision against TikTok and WeChat has worked in favor of the dollar. Trumps aim is to have TikTok sold to Microsoft and have WeChat disallowed in the US. Ongoing tension between China and the US as well as accusation of the popular apps spying on it’s citizens makes his decision seem understandable especially when we have seen countries like India ban TikTok already with Australia considering the move also.
Now we have the traders stumbling over themselves like a TikTok dance we, can focus on NFP. The expectation at the start of the race was that NFP would increase around 1.5 million jobs in July. However the poor results in PMI and ADP labor market figures have brought doubt on the greenback ahead of the positive expectation.
More to come.
Queue popular pop song, followed by weird dance, sign off with a peace sign. #TikTokvideoover