Market Roundup
•US Apr Private Nonfarm Payrolls 167K,181K forecast,232K previous
•US Apr U6 Unemployment Rate 7.4%, 7.3% previous
•US Apr Average Hourly Earnings (MoM)0.2%, 0.3% forecast,0.3% previous
•US Apr Participation Rate 62.7% previous
•US Apr Average Hourly Earnings (YoY) (YoY) 3.9%,4.0% forecast,4.1% previous
•US Apr Nonfarm Payrolls 175K,238K forecast,303K previous
•US Apr Government Payrolls 8.0K,71.0K previous
•US Apr Average Weekly Hours 34.3, 34.4 forecast,34.4 previous
•US Apr Manufacturing Payrolls 8K,5K forecast,0K previous
•US Apr Unemployment Rate 3.9%,3.8% forecast,3.8% previous
•US Apr S&P Global Composite PMI 51.3,50.9 forecast,52.1 previous
•US Apr Services PMI 51.3, 50.9 forecast,51.7 previous
•US Apr ISM Non-Manufacturing PMI 49.4,52.0 forecast,51.4 previous
•US Apr ISM Non-Manufacturing Employment 45.9,48.5 previous
•US Apr ISM Non-Manufacturing Prices 59.2,53.4 previous
•US Apr ISM Non-Manufacturing New Orders 52.2,54.4 previous
•US Apr ISM Non-Manufacturing Business Activity 50.9,57.4 previous
•U.S. Baker Hughes Oil Rig Count 499,506 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against dollar on Friday after data showed U.S. jobs growth slowed more than expected in April and annual wage gains cooled, boosting bets that the Federal Reserve will cut rates twice this year.Employers added 175,000 jobs last month, below economists' expectations for a 243,000 increase. Wages increased 3.9% in the 12 months through April, below expectations for a 4.0% gain after rising 4.1% in March.The unemployment rate rose to 3.9% from 3.8%, remaining below 4% for the 27th straight month. The euro gained 0.39% to $1.0766.Immediate resistance can be seen at 1.0771(38.2% fib), an upside break can trigger rise towards 1.0843(23.6% fib).On the downside, immediate support is seen at 1.0711 (50% fib), a break below could take the pair towards 1.0649(61.8% fib).
GBP/USD: Sterling initially gained dollar on Friday but early rally fizzled as investors digested US nonfarm payrolls data. Nonfarm payrolls increased by 175,000 jobs last month, the Labor Department said in its employment report on Friday. March was revised up to show payrolls rising by 315,000 jobs instead of 303,000. Economists polled by Reuters had forecast payrolls advancing by 243,000. The unemployment rate rose to 3.9% from 3.8%. Wages increased 3.9% in the 12 months through April after rising 4.1% in March. The pound was last 0.15% higher against the dollar at $1.2555.After payrolls data, markets will be looking to the Bank of England's meeting next week for clues on when its policy easing could begin. Immediate resistance can be seen at 1.2561 (38.2%fib), an upside break can trigger rise towards 1.2632(23.6 % fib).On the downside, immediate support is seen at 1.2513 (50 % fib), a break below could take the pair towards 1.2464 (61.8 % fib).
USD/CAD : The Canadian dollar initially gained against its U.S. counterpart on Friday but lost most of the ground as investors digested U.S. Nonfarm Payrolls data. Nonfarm payrolls rose by 175,000 last month, the lowest since October 2023, and short of the 243,000 estimate of economists polled . The 3.9% annual change in average hourly earnings was the smallest since May 2021 and continued a steady decline toward the mid-3% range, which policymakers feel is consistent with their 2% inflation target. The dollar index was last down 0.27% at 105.03 after reaching 104.52, the lowest since April 10. The loonie was trading 0.1% lower at C$1.3680 to the greenback, after trading in a range of 1.3611 to 1.3691.Immediate resistance can be seen at 1.3702(38.2%fib), an upside break can trigger rise towards 1.3783 (23.6%fib).On the downside, immediate support is seen at 1.3636 (50 % fib), a break below could take the pair towards 1.3577(61.8 % fib).
USD/JPY: The U.S. dollar dipped against yen on Friday after data showed softer-than-expected US employment report. U.S. job growth slowed more than expected in April and the increase in annual wages fell below 4.0% for the first time in nearly three years, but it is probably too early to expect that the Federal Reserve will start cutting interest rates before September as the labor market remains fairly tight.The Labor Department's closely watched employment report on Friday also showed the unemployment rate rising to 3.9% from 3.8% in March amid increasing labor supply. Nonetheless, the jobless rate remained below 4% for the 27th straight month. Data this week showed job openings declining in March. The greenback weakened 0.48% to 152.9 Japanese yen , reaching as low as 151.86, the weakest since April 10. Strong resistance can be seen at 153.53 (38.2 % fib), an upside break can trigger rise towards 155.19(23.6%fib).On the downside, immediate support is seen at 152.06(50% fib), a break below could take the pair towards 151.26(Lower BB).
Equities Recap
European shares notched its biggest one-day gain since a week ago on Friday, driven by gains in the technology sector, while banks dropped to over a week's low, weighed down by Societe Generale following a dismal forecast.
UK's benchmark FTSE 100 closed up by 0.51 percent, Germany's Dax ended up by 0.51 percent, France’s CAC finished the day up by 0.54 percent.
Wall Street surged to a higher close on Friday as a softer-than-expected employment report bolstered the case for rate cuts from the Federal Reserve while also providing evidence of U.S. economic resilience.
Dow Jones closed up by 1.18% percent, S&P 500 closed up by 1.26% percent, Nasdaq settled up by 1.99% percent.
Treasuries Recap
Treasury yields fell, along with the dollar, after the payrolls report as investors increased expectations for a rate cut this year from the Fed in September.
The yield on benchmark U.S. 10-year notes dropped 6.1 basis points to 4.51%, from 4.571% late on Thursday while the 2-year note yield, which typically moves in step with interest rate expectations, fell 6.5 basis points to 4.8119%, from 4.877%.
Commodities Recap
Gold prices were set to drop for a second straight week on Friday, as investors grasped the idea for rates to remain higher in the U.S. until at least year-end.
Spot gold fell 0.2% to $2,301.81 per ounce , and has lost more than 1% this week. U.S. gold futures fell 0.1% to $2,308.06.
Oil prices settled lower on Friday, and posted their steepest weekly loss in three months as investors weighed weak U.S. jobs data and possible timing of a Federal Reserve interest rate cut.
Brent crude futures for July settled 71 cents lower, or 0.85%, to $82.96 a barrel. U.S. West Texas Intermediate crude for June fell 84 cents, or 1.06%, to $78.11 a barrel.
