XAG/USD tumbles to eight-week lows, worst week since October – Crypto News – Crypto News
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XAG/USD eases from four-month highs $21.65 XAG/USD eases from four-month highs $21.65

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XAG/USD tumbles to eight-week lows, worst week since October – Crypto News

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2 years ago

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  • US Dollar soars across the board after NFP.
  • US ISM Service brings in more favorable data.
  • Silver drops by more than 3% on Friday; down 8% from Thursday’s peak.

Metals extended the sell-off after the US official employment report. Silver hits fresh monthly lows near $22.50 and is having its worst day in months.

Strong labor market, service sector expanding again

United States economic data released on Friday came in above expectations, reflecting a strong labor market and an improvement in service sector activity. The numbers boosted the US Dollar and Treasury bond yields. Wall Street is moving without a clear direction.

The data published on Friday by the US Bureau of Labor Statistics (BLS) showed that Nonfarm Payrolls rose by 517K in January, significantly above the market expectation of 185K. November and December’s figures were revised higher. The unemployment rate dropped unexpectedly to 3.4%.

A different report released more recently revealed that economic activity in the service sector turned into expansion territory in January with the ISM Service PMI rising from 49.2 in December to 55.2, surpassing market expectations of 50.4. In addition, the Price Paid Index dropped modestly from 68.1 to 67.8, above the consensus of 65.5.

Silver hit a fresh low following the ISM data at $22.47, the lowest since December 7. As the end of the week looms, XAG/USD attempts to trim losses and trades at $22.65, down 3.40% for the day. From Thursday’s high it has fallen 8%.

Technicals added pressure to XAG/USD and suggest at the moment that more losses are likely. Price is breaking a one-and-a-half consolidation range to the downside, after being rejected again from above $24.00.

Interim support emerges around $22.50, below which is a strong barrier around $22.00. A recovery back above $23.00 could ease the bearish pressure.

XAG/USD daily chart

technical levels

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