Market Roundup
•U.S. weekly jobless claims drop below 400,000
• US May ADP Nonfarm Employment Change 978K,650K forecast, 742K previous
• US Continuing Jobless Claims 428.00K, 3,615K forecast, 3,642K previous
• US Jobless Claims 4-Week Avg 428.00K,458.75K previous
• US Initial Jobless Claims 385K,390K forecast, 406K previous
• US Nonfarm Productivity (QoQ) (Q1) 5.4%,5.5% forecast, 5.4% previous
• US May Services PMI 70.4,70.1 forecast, 64.7 previous
• US May Markit Composite PMI 68.7,68.7,68.1 forecast, 63.5 previous
•US May ISM Non-Manufacturing Business Activity 67.2 forecast, 62.7 previous
•US May ISM Non-Manufacturing PMI 64.0, 63.0 forecast, 62.7 previous
•US May ISM Non-Manufacturing New Orders 63.9,63.2 previous
•US ISM Non-Manufacturing Employment 55.3 ,55.3, 58.8 previous
•US Gasoline Inventories 1.500M, -1.479M forecast, -1.745M previous
•US Crude Oil Inventories -5.080M,-2.443M forecast, -1.662M previous
Looking Ahead - Economic Data (GMT)
•23:30 Japan Apr Household Spending (YoY) 9.3% forecast, 6.2% previous
•23:30 Japan Apr Household Spending (MoM) -2.2% forecast, 7.2% previous
•01:30 Australia Home Loans (MoM) 3.3% previous
Looking Ahead - Economic events and other releases (GMT)
•07:00 New Zealand RBNZ Gov Orr Speaks
Currency Summaries
EUR/USD: The euro declined on Thursday as dollar was aided by stronger than expected US jobs data pointed to an improvement in the labor market and heightened signs that the world's largest economy was on track to recover from the COVID-19 pandemic. US private payrolls rose 978,000 jobs in May, the largest increase since June 2020, according to the ADP National Employment Report. Economists polled had predicted that U.S. private payrolls would increase 650,000 jobs. While, initial jobless claims in the U.S. fell below 400,000 for the first time since the pandemic began more than a year ago last week. Immediate resistance can be seen at 1.2192 (38.2% fib), an upside break can trigger rise towards 1.2257 (23.6%fib).On the downside, immediate support is seen at 1.2124 (Daily low), a break below could take the pair towards 1.2100(61.8%fib).
GBP/USD: The sterling declined against the dollar on Thursday as data showing an increase in hiring among private employers in the United States suggested a rapidly recovering economy pushed the dollar higher. Investors have been betting heavily against the dollar for the past few months, but have become more cautious lately, wondering whether a surprisingly strong economic recovery from the US threatens the theory that rates will stay low for a long time. Sterling fell 0.43% to $1.4108 following the stronger than expected U.S. private payrolls data. Immediate resistance can be seen at 1.4134 (5DMA),an upside break can trigger rise towards 1.4214 (23.6%fib).On the downside, immediate support is seen at 1.4086 (38.2%fib), a break below could take the pair towards 1.4005(50%fib).
USD/CAD: The loonie fell to a six-day low versus its much stronger U.S. counterpart on Thursday as US economic data reinforced signs that the world's largest economy was on the way to recovering from the COVID pandemic . The loonie, which was on the rise this year due to higher commodity prices and the Bank of Canada's more aggressive stance, traded 0.6% lower against greenback at 1.2106. The May employment report for the United States and Canada will be released on Friday. Economists expect the data to show that the number of jobs in Canada fell by 20,000 after falling by 207,000 in April. Immediate resistance can be seen at 1.3437(Daily high), an upside break can trigger rise towards 1.3467 (Feb 28th high).On the downside, immediate support is seen at 1.3386 (5 DMA), a break below could take the pair towards 1.3332 (11 DMA).
USD/JPY: The dollar strengthened against yen on Thursday as number of Americans applying for new unemployment benefits has declined in the past week, indicating that the job market is strong. According to data released on Thursday, since the beginning of the COVID-19 pandemic more than a year ago, the number of initial jobless claims fell below 400,000 last week. Focus now turns to key U.S. non-farm payroll numbers due on Friday. Strong resistance can be seen at 109.96 (Higher BB), an upside break can trigger rise towards 110.26 (23.6%fib).On the downside, immediate support is seen at 109.26(50%fib), a break below could take the pair towards 108.80(61.8%fib).
Equities Recap
European stocks pared losses on Thursday as upbeat eurozone business growth data and robust U.S. jobs data lifted sentiment on quite trading day .
UK's benchmark FTSE 100 closed down by 0.61 percent, Germany's Dax ended up by 0.19 percent, France’s CAC finished the day down by 0.21 percent.
U.S. stock indexes dropped on Thursday as awaited strong U.S. data reports for cues on economic recovery and inflation signals.
Dow Jones ended down by 0.07 percent, S&P 500 ended lower by 0.36 percent, Nasdaq was settled down by 1.03 percent.
Treasuries Recap
U.S. Treasury yields rose in light trading on Thursday ahead of the government's employment report in May.
The 10-year benchmark return increased 3.4 basis points to 1.625%. Five- and seven-year bond yields hit two-week highs.
Commodities Recap
Gold fell as much 2.3% on weekday as better-than-expected U.S. employment and repair sector information propelled the dollar higher.
Spot gold was down 1.9% at $1,871.91 per ounce by 1:43 p.m. EDT (1743 GMT), after falling to its lowest level since May 20 at $1,864.39. U.S. gold futures settled down 1.9% at $1,873.30.
oil prices steadied on Thursday following two straight days of gains that took oil futures to highs not seen in a year, after weekly U.S. crude stocks fell sharply while fuel inventories rose more than expected.
Oil prices stabilized on Thursday after two consecutive days with gains pushing oil futures to highs not seen in a year after U.crude's weekly stocks fell sharply while fuel inventories were stronger than expected increased.
Brent futures settled at $71.31 a barrel, down 4 centsafter touching its highest since May 2019 earlier in the session. U.S. crude settled at $68.81 a barrel, losing 2 cents.
