Crude oil prices extended the gains on Thursday, after the European Central Bank announced a surprise rate cut to the benchmark interest rates by 25 basis points to 1.25%, where markets were expecting the ECB to leave rates unchanged. Moreover, hopes that Greece will avoid holding a referendum amid speculations the Greek government could resign, boosted demand for higher yielding assets earlier on Thursday.
Nonetheless, the ISM services index slowed in October opposite to projections, which weighed down on demand for higher yielding assets, and accordingly, crude oil prices pared some of the gains.
Traders will be eyeing the Canadian and American jobs reports on Friday, where Canada’s net change in employment is expected to rise by 20,000 jobs, while the U.S. Nonfarm payrolls are expected to rise by 95,000 jobs in October. Moreover, traders will be also eyeing the G20 meeting to see whether they will offer more support to Europe to help solve the EU debt crisis. We should expect Greece to remain in the focus throughout the coming period as well.
Friday November 04:
Canada will release the jobs report for October at 11:00 GMT, where the unemployment rate is expected to remain unchanged at 7.1% in line with the prior estimate, and the net change in employment is expected to increase by 20.0K jobs in October, compared with the prior rise of 60.9K jobs in September.
At 12:30 GMT the United States will join the session with the monthly jobs report for October, where the change in nonfarm payrolls is expected at 95 thousand new jobs from 103 thousands in September. In addition, the unemployment rate is expected unchanged at 9.1%.
