Apple (APPL) Soars, Gold Struggles, USD and VIX Slip, Sentiment Positive Ahead of NFPs

• Apple drives risk sentiment ahead of US NFPs.
• Japanese Yen is starting to push higher after intervention.
• US dollar slips to a three-week low.

Learn how to trade a range of market conditions with our free trading guides

For all economic data releases and events see the DailyFX Economic Calendar

Apple’s Q2 earnings are giving markets an early boost, after the world’s 2nd largest company beat market expectations across a range of metrics and announced a record-breaking USD110 billion share buyback, up from USD90 billion last year. Apple shares rose by 2.3% during regular hours and added nearly 6% in after-hours trading. The move higher has broken a recent series of lower highs and leaves $196-$200 as the next zone of resistance.

Apple (APPL) Daily Chart

IG All Sessions Chart

Keep informed of all earnings releases with the DailyFX Earnings Calendar

The Japanese Yen is finally seeing the benefit from the recent rounds of official intervention and is pushing higher, in holiday-thinned trade. USD/JPY is back just above 153.00, its lowest level in nearly three weeks, and is moving towards a prior area of interest around 151.90. Below here 150.00 comes into focus. Japan is closed on Monday 6th.

USD/JPY Daily Chart

Chart via TradingView

A recent sell-off in US Treasury yields is weighing on the US dollar. UST 2s hit 5.04% on Thursday and are now quoted at around 4.93%, while the benchmark UST 10s are offered at 4.63%, around 7 basis points lower than this week’s high.

The US dollar index remains channel bound and recent thoughts that a bullish flag was forming are being tested. Today’s US Jobs Report (13:30 UK) will decide the dollar’s fate ahead of the weekend.

US Dollar Index Daily Chart

Chart via TradingView

The latest bout of risk-on sentiment can be seen in the VIX ‘fear gauge’ which is now testing multi-week lows. The VIX is now testing both the 50- and 200-day simple moving average, and a confirmed break below these two indicators could see the VIX testing a cluster of prior lows down to the 12.00 level in the coming days.

VIX Daily Price Chart

Chart via TradingView

Gold is trading sideways in a small range today after this week’s break out from a bearish flag setup. The precious metal has tested support around $2,280/oz. on three occasions this week and a weaker-than-expected US Job Report or a further strengthening of the current risk-on move will see gold test this support again.

Gold Daily Price Chart

Charts via TradingView

IG Retail Sentiment show 55.89% of traders are net-long with the ratio of traders long to short at 1.27 to 1.The number of traders net-long is 5.87% higher than yesterday and 1.20% higher than last week, while the number of traders net-short is 2.14% lower than yesterday and 2.91% lower than last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall.

Are you risk-on or risk-off ?? You can let us know via the form at the end of this piece or contact the author via Twitter @nickcawley1.