With the European PPI numbers coming out on Monday and taking the headlines, the reality is that it should be a fairly calm session as we got the US jobs numbers on Friday. However, there are a couple of assets that we are paying attention to.
Gold approaching support?
Gold markets fell last Monday in reaction to the Nonfarm Payroll announcement, but the $1200 level has shown itself to be supportive quite often in the past, so anybody that is looking to put on bearish bets against the yellow metal will have to be cognizant of the fact that the $1200 level has seen quite a bit of bullish trading. With this, it is possible that upward pressure could show itself fairly soon.
Natural gas slumps
The natural gas markets have recently tested the $2 level, but failed at that area as the large, round, psychological significance of the number may have been a bit too much for the bullish traders out there. During the session on Friday, we initially tried to rally but turned right back around to form a fairly negative looking candle. With this, it appears that the put buyers have stepped back into this market, and very well could push it lower.
USD/CAD rallies
The USD/CAD pair rallied during the session on Friday, which is a bit of a natural extension considering that the oil markets fell. With pressure showing up on the oil markets, the Canadian dollar will more than likely continue its long-running tradition of rising and falling with the commodity. With this, it looks as if the call buyers have reentered the fray, and that bullish pressure is starting to pick up.
