Results of US Non-farm payrolls for August, released last Friday, disappointed on 151K rise vs expected 180K and previous month release at 255K. Growth in US employment slowed more than expected after two straight months of robust figures. Weak data for August are again raising fears of further obstacles on Fed’s way towards next rate hike, after series of positive US economic data boosted expectations of possible action of the central bank towards the end of the year.

The dollar was on a bumpy road on Friday after jobs data release, falling against most of major counterparts, but managing to recover ground towards the end of the session.
The greenback starts the week at the back foot after ending Friday’s trading positively.
Cable hit one-month high at 1.3350 on Friday, boosted by recent upbeat UK data, while the Euro closed in red on Friday, after spiking to 1.1250 after US data.
The dollar showed the best performance against yen and rose to more than one month high at 104.30, on surprise rally after disappointing US jobs numbers.

The Aussie remains on strong footing and heads towards Friday’s high at 0.7613, on Monday’s fresh strength.
Spot gold jumped on Friday, marking the strong daily gains in one month, after investors exited dollar positions on disappointing US data that reduced hopes of US rate hike in the near future. The yellow metal holds around $1325 in early European trading, just under Friday’s post-data peak at $1329.

Crude oil also benefited from weaker dollar and rallies on Monday, extending recovery rally from correction low at $42.99, posted last week. Oil price hit recovery high at $45.97 in early Monday. Reversal pattern is forming on the daily chart and oil price may raise further, as dollar got hit by weaker-than expected US jobs data.
G20 meeting in China on 4-5 September is in focus today. A number of meetings between top world leaders were seen on the first day of summit. Russian president Putin met German Chancellor Angela Merkel, to talk about bilateral relations between Russia and Germany and also met Saudi King, as oil is one of the top subjects, in light of global oversupply and recent fall in oil prices, as well as repeated failure of oil producers to reach an agreement about production freeze, to pusd prices higher. President Putin said that Saudi Arabia is one of main oil producers and no decision could be made without them.
US President Obama met president Putin, with Syria being the main subjects of their talks which are going to continue on Monday.
Most of G20 members agreed that economic sanctions against Russia will remain.

Highlights of the day

Europe
Along with G20 meeting, highlight of the European session are Eurozone’s Services PMI data. Releases were mixed, with Spanish and Italian data beating the forecasts, while German and EU releases came below expectations.
UK Services PMI for August is forecasted at 50.0 vs July’s release at 47.4. Data is due at 08:30 GMT.

America
America is closed on Monday for the Labor Day holiday.
Important levels

EURUSD
The Euro ended trading on Friday in red, despite weaker-than-expected US data. Losses were so far contained at 1.1150, which guards more significant 1.1120 support zone (correction low of 31 Aug, reinforced by 200SMA.
The pair is struggling to clearly break above daily cloud top (1.1167), with strong barriers at 1.1205 (daily Kijun-sen); 1.1230 (daily Tenkan-sen) and Friday’s post-data spike high at 1.1250.
Break out of recent congestion would define near-term direction.

GBPUSD
Cable remains well supported and looks for retest of Friday’s peak at 1.3350, which lies ahead of breakpoint at 1.3369 (03 Aug high). Repeated daily bullish closes, as well as the third consecutive bullish weekly close, maintain positive sentiment for further recovery. Sustained break above 1.3369 peak, would expose another breakpoints at 1.3500 zone.
Session low at 1.3278 marks initial support, followed by 1.3242 (Friday’s low) and daily Tenkan-sen line at 1.3204, which is expected to ideally contain corrective dips.

US Crude Oil
Oil rallied strongly in early Monday, extending recovery leg that commenced on Friday, to $45.97 (near 50% retracement of $49.34/$42.99 descend. The rally was so far daily cloud top, break of which would open way towards next pivot at $46.94 (Fibo 61.8%).
Initial support lies at $44.06, ahead of $43.15 and downside pivot at $42.99, loss of which will be bearish.
GOLD
Spot Gold extends recovery rally from five-week low at $1302, with fresh acceleration on Monday, retracing nearly 50% of $1367/$1302 downleg and probing above daily cloud top at $1322.
Fresh bullish signals are developing for extended recovery, as dollar was hit by weaker-than-expected US jobs data.
Sustained lift above daily cloud top would open next barriers at $1334 and more significant $1342/44 resistance zone.
$1320 marks immediate support, followed by $1316 and $1306., Market Analysis