June 6, 2014 - Market News Daily

Today Hot Assets: USD, Gold

The European Central Bank cut its benchmark rate to 0.15%, and they reduce the deposit rate to -0.1%. This is the first time a major bank has been using negative deposit rates and comes in response to concerns of deflation. Draghi also added stimulus to the economy increased optimism as it comes at a time when the U.S. withdraw stimulus. U.S. stocks surged and reached a record once again. The S & P 500 closed 0.65% higher at 1,940.46 and the Dow Jones closed 0.59% higher at 16,836.11. Asian stocks were little changed. Nikkei closed 0.01% lower as the dollar weakened against the yen; This pair is now trading at 102.31 yen. European stocks opened higher, the benefits of additional stimulus. Currently, the FTSE 100 was up 0.24% while the DAX up 0.05%. The CAC 40 in fact. Attention will now be today's NFP report which will be released at 12:30 GMT.

WTI Crude declined due to increased inventory but prices rise as dollar weakens again. Todays NFP report could give us insight into the strength of the U.S. economy and so we can see some movement after release. Gold rose after the European Central Bank's decision to lower rates and add stimulus. Easing is bullish for gold as prices rise in the face of additional currency. The weakening dollar also pushed up the metal after weak employment data. Traders should focus on non-farm payrolls report today because there will likely be no movement before release.

Game Day:

12:30 GMT: C - Employment Change - measures the change in the number of people employed. Job creation is an important indicator of consumer spending.

12:30 GMT: USD - Nonfarm Payrolls - measuring the change in number of employed people during the previous month, excluding the farming industry.

12:30 GMT: USD - Unemployment rate - measures the percentage of the total labor force that is unemployed and actively looking for work in the previous month.