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America’s Roundup: Dollar falls as U.S. non-farm payrolls lag behind expectations, Wall Street ends higher, Gold rebounds, Oil extends gain on OPEC+ supply discipline and recovering demand-June 5th,2021

Market Roundup

•U.S. nonfarm payrolls at 559,000 vs 650,000 forecast

•U.S. factory orders slide more than expected in April

•US May Unemployment Rate  5.9% forecast,6.1% previous

•Canada May Unemployment Rate  8.2% forecast, 8.1% previous

•US May Average Hourly Earnings (YoY) (YoY)  2.0%,1.6% forecast, 0.3% previous

•Canada May Participation Rate 64.6%,61.6%, 64.9% previous

•US May Participation Rate 61.6% 61.7% previous

•US May U6 Unemployment Rate  10.2%,10.4% previous

•Canada May Employment Change  -68.0K,-20.0K forecast, -207.1K previous

•US May Average Weekly Hours  35.0 forecast, 35.0 previous

•US May Government Payrolls  67.0K,48.0K previous

•US May Average Hourly Earnings (MoM)  2.0 ,0.2% forecast, 0.7% previous

•US Labor Productivity (QoQ) (Q1) -2.0% previous

•US May Part Time Employment Change  -77.8K previous

•US May Full Employment Change  -129.4K previous

•US May Manufacturing Payrolls  23K,24K forecast, -18K previous

•US May Private Nonfarm Payrolls  559K,600K forecast, 218K previous

•US May Nonfarm Payrolls  650K forecast, 266K previous             

•Canada May Ivey PMI 64.7, 60.6 previous          

•US Apr Factory Orders (MoM) -0.6%, -0.2% forecast, 1.1% previous     

•US Apr Durables Excluding Defense (MoM) 0.0% ,0.5%

•US Apr Factory orders ex transportation (MoM) 0.5%, 1.7% previous   

• Canada May Ivey PMI n.s.a 59.8, 59.9 previous              

Looking Ahead - Events, Other Releases (GMT)

• No data ahead

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro  reversed course from earlier decline on Friday as greenback dropped after U.S. jobs data was not as robust as expected, easing investor concerns that the Federal Reserve might quickly rein in economic stimulus. U.S. employers expanded hiring in May and raised wages. But the nonfarm payrolls boom of 559,000 jobs landed underneath the 650,000 forecast of economists. The dollar index fell 0.39%, with the euro up 0.36% to $1.2165. Immediate resistance can be seen at 1.2187(Daily high), an upside break can trigger rise towards 1.2195 (23.6%fib).On the downside, immediate support is seen at 1.2142 (38.2%fib), a break below could take the pair towards 1.2096 (50%fib).

GBP/USD: The British pound strengthened against the dollar on Friday after the US labor market data fell below expectations in May, easing worries that the booming economy may lead to faster tightening of monetary policy . The U.S. Labor Department reported that nonfarm payrolls increased last month by 559,000 jobs, which was below the 650,000 job gains economists polled  had forecast. Data for April was revised slightly higher to show payrolls rising by 278,000 jobs instead of 266,000 as previously reported. The unemployment rate fell to 5.8% from 6.1% in April. Immediate resistance can be seen at 1.4150 (14 DMA),an upside break can trigger rise towards 1.4194 (23.6%fib).On the downside, immediate support is seen at 1.4076 (38.2%fib), a break below could take the pair towards 1.4000(Psychological level).

USD/CAD: The loonie rose against its US counterpart on Friday as oil prices rose and investors weighted US and Canadian employment data. The lonnie rebounded from its weakest intraday level in more than a week.Canada lost 68,000 jobs in May, a bigger than expected drop as the lockdowns imposed to contain a harsh third wave of COVID-19 continued to weigh on the economy, according to Statistics Canada. Oil, one of Canada's top exports, rose 2% to $ 69.62 a barrel as OPEC + supply discipline and recovery in demand offset concerns about the uneven distribution of COVID-19 vaccine. Immediate resistance can be seen at 1.2143 (38.2%fib) upside break can trigger rise towards 1.2163(Higher BB ).On the downside, immediate support is seen at 1.2071 (14 DMA), a break below could take the pair towards 1.2027 (23.6%fib).

USD/JPY: The dollar dipped against yen on Friday after data showed US non-farm payrolls rose less-than-expected, dampening expectations that the Federal Reserve will tighten monetary policy sooner . The number of non-farm employees jumped 559,000 jobs last month, after increasing 278,000 in April, which was 7.6 million below its February 2020 peak, while economists had forecast 650,000 job creation in May. About 9.3 million people were classified as unemployed in the past month . Strong resistance can be seen at 109.76 (38.2%fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.30(50%fib), a break below could take the pair towards 109.14(30DMA).

Equities Recap

European stocks closed at a record high on Friday, as weak US employment data indicated that the possibility of currency tightening in the short term is low, and optimism about the economic recovery of the euro zone   provided impetus for most industries.

UK's benchmark FTSE 100 closed up by 0.07 percent, Germany's Dax ended up  by 0.39 percent, France’s CAC finished the day up by 0.12 percent.

US stocks rose on Friday, with tech stocks ahead of the pack as weaker-than-expected employment growth eased concerns about an overly hot economy and prompted an early tightening of monetary policy.

Dow Jones closed up by  0.52% percent, S&P 500 closed up by 0.88% percent, Nasdaq settled up by 1.47%  percent.

Treasuries Recap

U.S. Treasury yields tumbled and the yield curve flattened after US nonfarm payrolls data fell below expectations in May, dispelling concerns that economic prosperity may lead to faster tightening of monetary policy.

The benchmark 10-year yield fell to its lowest level since May 26 at 1.557%. It was last 6.8 basis points lower at 1.5585%. The 30-year yield slid as low as 2.233% and was last down 6.1 basis points at 2.2341%.

Commodities Recap

Gold rebounded from more than a two-week low on Friday after US.nonfarm's payrolls did not soar as much as expected, although the bullion was still on track to see its biggest weekly decline since March.

Spot gold rose 1% to US$1,889.27 per ounce at (1746 GMT), after hitting the lowest level since May 19 of US$1,855.59. U.S. gold futures settled up 1% at $1,892.

Oil continued its gains on Friday, and the price of Brent crude oil exceeded the $72 per barrel mark for the first time since 2019, as OPEC + supply discipline and a rebound in demand eased concerns about the sporadic use of the COVID-19 vaccine worldwide.

Brent crude rose 58 cents, or 0.8%, to settle at $71.89 a barrel, after touching $72.17, its highest since May 2019.U.S. West Texas Intermediate crude rose 81 cents, or 1.2%, to settle at $69.62.

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