Posted at 04 June 2022 / Categories Market Roundups
Market Roundup
•US May Manufacturing Payrolls 18K, 40K forecast,55K previous
•Canada Labor Productivity (QoQ) (Q1) -0.5%,-0.5% forecast, -0.5% previous
•US May U6 Unemployment Rate 7.1%,7.0% previous
•US May Average Hourly Earnings (YoY) (YoY) ) 5.2%,5.2% forecast, 5.5% previous
• US May Unemployment Rate 3.6%,3.5% forecast,3.6% previous
•US May Nonfarm Payrolls 390K,325K forecast,428K previous
• US May Private Nonfarm Payrolls 333K,325K forecast, 406K previous
• US May Average Hourly Earnings (MoM) 0.3%,0.4% forecast, 0.3% previous
• US May Services PMI 53.4, 53.5 forecast, 55.6 previous
• US May Markit Composite PMI 53.6, 53.8 forecast,56.0 previous
• US May ISM Non-Manufacturing New Orders 57.6,54.6 previous
• US May ISM Non-Manufacturing Employment 50.2,49.5 previous
• US May ISM Non-Manufacturing PMI 55.9,56.4 forecast,57.1 previous
• US May ISM Non-Manufacturing Business Activity 54.5,59.1 previous
• US U.S. Baker Hughes Total Rig Count 727,727 previous
• U.S. Baker Hughes Oil Rig Count 574, 574 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro declined on Friday as dollar strengthened after a better-than-expected U.S. employment report pointed to a tight labor market that could keep the Federal Reserve on an aggressive path of interest rate hikes. Nonfarm payrolls increased by 390,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Economists polled by Reuters had forecast payrolls increasing by 325,000 jobs in May. The Fed has raised interest rates by three quarters of a percentage point this year, and most Fed policymakers back raising interest rates another half of a percentage point at each of their next two meetings .Immediate resistance can be seen at 1.0788(38.2%fib), an upside break can trigger rise towards 1.0851(Higher BB).On the downside, immediate support is seen at 1.0718(5DMA), a break below could take the pair towards 1.0606(23.6%fib A).
GBP/USD: The British pound declined against the U.S. dollar on Friday after upbeat jobs data supports case for continued Fed tightening. U.S. employers hired more workers than expected in May and maintained a fairly strong pace of wage increases, signs of labor market strength that will keep the Federal Reserve on an aggressive monetary policy tightening path to cool demand. The survey of establishments showed that nonfarm payrolls increased by 390,000 jobs last month. Data for April was revised higher to show payrolls rising by 436,000 jobs instead of 428,000 as previously estimated. Immediate resistance can be seen at 1.2598(38.2%fib),an upside break can trigger rise towards 1.2696 (50%fib).On the downside, immediate support is seen at 1.2478(23.6%fib), a break below could take the pair towards 1.2340(19th May low).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday but was holding near its highest level in more than six weeks, as oil prices rose and robust U.S. jobs data bolstered expectations for aggressive Federal Reserve interest rate hikes. The price of oil, one of Canada's major exports, was boosted on Friday by expectations that OPEC's decision to increase production targets by slightly more than planned won't much affect tight global supply and by rising demand as China eases COVID restrictions. U.S. crude prices settled 1.7% higher at $118.87 a barrel .The loonie was trading 0.1% lower at 1.2585 to the greenback , after touching its strongest since April 21 at 1.2552. Immediate resistance can be seen at 1.2627 (5DMA), an upside break can trigger rise towards 1.2650 (38.2%fib).On the downside, immediate support is seen at 1.2549 (23.6%fib), a break below could take the pair towards 1.2495 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as strong U.S. jobs data strengthened the case for the Federal Reserve to stay aggressive with monetary policy. Data showed U.S. employers hired more workers than expected in May and maintained a fairly strong pace of wage increases, signs of labor market strength. The Labor Department's closely watched report showed nonfarm payrolls rose by 390,000 jobs last month and wages grew solidly, while the unemployment rate held steady at 3.6% - all signs of a tight labor market.Economists polled had forecast nonfarm payrolls to rise by 325,000 jobs. Strong resistance can be seen at 131.02 (23.6%fib), an upside break can trigger rise towards 131.69(23.6%fib).On the downside, immediate support is seen at 129.51 (38.2%fib), a break below could take the pair towards 128.36(9DMA).
Equities Recap
European shares fell on Friday, wiping out earlier gains, after U.S. jobs data supported the case for the Federal Reserve's aggressive policy tightening and investors raised their bets on ECB rate hikes following strong inflation numbers this week.
UK's benchmark FTSE 100 closed down by 0.17%percent, Germany's Dax ended down by 0.98% percent, France’s CAC finished the day down by 0.23% percent.
US stock indexes fell on Friday, dragged down by shares of Apple and Tesla, while a solid jobs report supported the view that the Federal Reserve would continue on its aggressive policy tightening path to cool decades-high inflation.
Dow Jones closed down by 1.05%percent, S&P 500 closed up by 1.63% percent, Nasdaq settled down by 2.47% percent.
Commodities Recap
Gold prices fell on Friday, pressured by a stronger dollar and as better-than-expected U.S. jobs data raised concerns of aggressive monetary policy tightening.
Spot gold fell 1% to $1,848.67 per ounce by 1759 GMT, after earlier falling to $1,846.4. U.S. gold futures settled down 1.1% at $1,850.2.
Oil settled higher on Friday, supported by expectations that OPEC's decision to increase production targets by slightly more than planned will not add that much to global supply which should tighten as China eases COVID restrictions.
Brent crude rose $2.11, or 1.8%, to settle at $119.72 a barrel by 1338 GMT. U.S. West Texas Intermediate (WTI) crude advanced $2, or 1.7%, to $118.87.