Posted at 02 April 2022 / Categories Market Roundups
Market Roundup
•U.S. job data shows unemployment at two-year low of 3.6%
•Nonfarm payrolls rose by 431,000 jobs last month
•US Mar Average Weekly Hours 34.6,34.7 forecast, 34.7 previous
•US Mar private Nonfarm Payrolls 426, 480K forecast,654K previous
•US Mar Nonfarm Payrolls 431K, 490K forecast, 678 previous
•US Mar Unemployment Rate 3.6%, 3.7% forecast, 3.8% previous
•US Mar Participation Rate 62.4%,62.3% previous
•US Mar Average Hourly Earnings (YoY) (YoY 5.6%,5.5% forecast, 5.1%previous
•US Mar Average Hourly Earnings (MoM) 0.4%, 0.4% ,0.6% previous
•Canada Manufacturing PMI 58.9, 56.6 previous
•US Mar Manufacturing PMI 58.8, 58.5 forecast, 57.3 previous
•US Feb Construction Spending (MoM) 0.5%, 1.0% forecast 1.3% previous
•US Mar ISM Manufacturing New Orders Index 53.8,61.7 previous
•US Mar ISM Manufacturing Employment 56.3, 52.9 previous
•US Mar ISM Manufacturing PMI 57.1,59.0 forecast, 58.6 previous
•US Mar ISM Manufacturing Prices 87.1 , 80.0 forecast, 75.6 previous
•U.S. Baker Hughes Oil Rig Count 533,531 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined on Friday as robust U.S. job growth numbers boosted dollar across the board. The Labor Department's employment report showed a rapid hiring pace by employers while wages continued to climb, although not enough to keep pace with inflation. U.S. employers added 431,000 jobs in March, which was shy of the 490,000 estimate but still showed strong job gains. The unemployment rate dropped to 3.6%, a new two-year low while average hourly earnings rose 5.6% on a year-over-year basis. Immediate resistance can be seen at 1.1069 (5DMA), an upside break can trigger rise towards 1.1162(382%fib).On the downside, immediate support is seen at 1.1027 (23.6%fib), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: The British pound edged lower against the U.S. dollar on Friday and was on track for a weekly loss of around 0.5%, as optimism surrounding peace talks in Ukraine faded, while UK manufacturing growth hit a 13-month low. The S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to 55.2 in March, revised down from a preliminary reading of 55.5 and below the 58.0 recorded in February. Sterling was down 0.33% against the dollar to $1.3111. Immediate resistance can be seen at 1.3152 (38.2%fib), an upside break can trigger rise towards 1.3211 (50%fib).On the downside, immediate support is seen at 1.3070 (23.6%fib), a break below could take the pair towards 1.3003(Lower BB).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday, extending a modest weekly decline, as oil prices fell and the gap between U.S. and Canadian bond yields moved in favor of the U.S. bonds. Canadian manufacturing activity expanded at a record pace in March as restrictions to contain the coronavirus pandemic eased and demand conditions improved, although the Russia-Ukraine war contributed to mounting cost pressures. The price of oil, one of Canada's major exports, settled 1% lower at $99.27 a barrel. The loonie was down 0.1% at 1.2515 to the greenback, after trading in a range of 1.2481 to 1.2539.Immediate resistance can be seen at 1.2532 (38.2%fib), an upside break can trigger rise towards 1.2598 (50%fib).On the downside, immediate support is seen at 1.2465 (23.6%fib), a break below could take the pair towards 1.2428 (March 30th low).
USD/JPY: The dollar strengthened against the yen on Friday as solid US jobs data increased expectation for Federal Reserve to raise interest rates by a hefty 50 basis points in May. The Labor Department's closely watched employment report's survey of establishments showed that nonfarm payrolls increased by 431,000 jobs last month. The data will help the US Federal Reserve determine the path for interest rates in the world’s biggest economy. The unemployment rate dropped to 3.6%, the lowest since February 2020, from 3.8% in February. Strong resistance can be seen at 123.12 (23.6%fib), an upside break can trigger rise towards 124.34(29th March high).On the downside, immediate support is seen at 122.12(38.2%fib), a break below could take the pair towards 121.56(50%fib).
Equities Recap
Despite lingering concerns about the war in Ukraine and rising inflation, European stocks closed modestly higher on Friday, gaining ground after exhibiting weakness in the previous two sessions.
UK's benchmark FTSE 100 closed up by 0.30 percent, Germany's Dax ended up by 0.22 percent, France’s CAC finished the day up by 0.37 percent.
The S&P 500 rose modestly to kick off the second quarter on Friday, as the monthly jobs report indicated a strong labor market and is likely to keep the Federal Reserve on track to maintain its hawkish policy stance.
Dow Jones closed up by 0.40% percent, S&P 500 closed up by 0.34% percent, Nasdaq settled up by 0.29% percent.
Treasuries Recap
U.S. Treasury yields rose on Friday and a closely watched part of the yield curve reinverted as a strong jobs report for March supported the view that the Federal Reserve will need to aggressively hike rates to stem soaring inflation.
Two-year yields rose as high as 2.456%, from around 2.39% before the data. Benchmark 10-year yields rose to 2.456%, from around 2.40%.
Commodities Recap
Gold retreated on Friday and was set to post a weekly decline after robust U.S. jobs data drove the dollar higher and bolstered bets that the Federal Reserve would aggressively raise rates.
Spot gold fell 0.8% to $1,921.86 per ounce by 01:53 p.m. ET (1753 GMT). U.S. gold futures settled down 1.6% at $1,923.70.
Oil settled lower on Friday as members of the International Energy Agency (IEA) agreed to join in the largest-ever U.S. oil reserves release.
Both Brent and U.S. crude benchmarks settled down around 13% in their biggest weekly falls in two years after U.S. President Joe Biden announced the release on Thursday.
Brent crude futures were down 32 cents, or 0.3%, at $104.39 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.01, or 1%, at $99.27.