Gold prices are unchanged on Friday, as the metal is trading at a spot price of $1266.92. Today's highlight is US Nonfarm Employment Change. The markets are expecting a weak report for January, with an estimate of 236 thousand. The US will also release the unemployment rate, which is expected to remain at 5.6%.
In the US, this week's employment readings have not impressed. ADP Non-Farm Employment Change was well off expectations, falling to 213 thousand. The estimate stood at 224 thousand. Unemployment Claims rose to 278 thousand last week, although this did beat the forecast of 287. If the official Nonfarm Employment Change does soften as is expected, the dollar could lose some ground.
The new Greek government has been talking tough about renegotiating its bailout agreement, much to the consternation of the troika and Germany. Greece has declared that it will not honor the current bailout agreement and has put a halt to the sale of major public assets to help pay back its debt. The ECB hit back on Wednesday, saying that it would no longer accept Greek government bonds as collateral for ECB loans. This will put pressure on Greek banks and serves as a warning that the ECB will not stand idly by as Greece tries to avoid its bailout obligations. The fireworks could continue next week, as German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras attend an EU meeting in Brussels next week.
