Market Roundup
• Trump threatens more China tariffs; Beijing ready to hit back.
• Fed's Powell points to rate hikes, uncertainty on trade tensions.
• U.S. Mar Non-Farm Payrolls, 103k, 193k forecast, 313k previous, 326k revised.
• U.S. Mar Private Payrolls, 102k, 190k forecast, 287k previous, 320k revised.
• U.S. Mar Manufacturing Payrolls, 22k, 20k forecast, 31k previous, 32k revised.
• U.S. Mar Government Payrolls, 1k, 26k previous, 6k revised.
• U.S. Mar Average Earnings MM, 0.3%, 0.2% forecast, 0.1% previous.
• U.S. Mar Average Earnings YY, 2.7%, 2.7% forecast, 2.6% previous .
• U.S. Mar Average Workweek Hrs, 34.5, 34.5 forecast, 34.5 previous.
• U.S. Mar Unemployment Rate, 4.1%, 4.0% forecast, 4.1% previous.
• NAFTA ministers meet to work on possible deal, focus on autos.
• CA Mar Employment Change, 32.3k, 20k forecast, 15.4k previous.
• CA Mar Unemployment Rate, 5.8%, 5.8% forecast, 5.8% previous.
• CA Mar Full time employment change, 68.3k, -39.3k previous.
• CA Mar Part time employment change, -35.9k, 54.7k previous.
• CA Mar Participation Rate, 65.5%, 65.5% previous.
• CA Mar Ivey PMI, 64.7, 58.4 previous.
• CA Mar Ivey PMI SA, 59.8, 59.6 previous.
• In strike against Putin, U.S. imposes sanctions on businessmen close to Kremlin.
• UK watchdog says licence needed to trade cryptocurrencies.
Looking Ahead - Economic Data (GMT)
• 7 Apr 08:00 China Mar Fx Reserves (Monthly), 3.140 tln forecast, 3.134 tln previous
• 8 Apr 23:00 Australia Mar AIG Construction Index, 56.0 previous
• 8 Apr 23:50 Japan Feb Current Account NSA JPY, 2160.0 bln forecast, 607.4 bln previous
• 9 Apr 05:00 Japan Mar Consumer Confidence Index, 44.3 previous
• 9 Apr 06:00 Japan Mar Economy Watchers Poll SA, 48.6 previous
Looking Ahead - Events, Other Releases (GMT)
• 7 Apr 14:30 Fed's Charles Evans speaks on current economic conditions and monetary policy - Chicago
Currency Summaries
EUR/USD is likely to find support at 1.2200 levels and currently trading at 1.2281 levels. The pair has made session high at 1.2290 and hit lows at 1.2215 levels. The euro rose against the greenback on Friday as investors were worried after China fought back against a new U.S. threat to increase tariffs on Chinese goods, and as the market took in a report showing the U.S. economy in March created the fewest jobs in six months.The greenback slid against euro in the wake of China's comments. The U.S.-China trade dispute outweighed the U.S. payrolls report that showed fewer job gains than expected, but a pick-up in wage growth. China warned it would fight back "at any cost," hours after U.S. President Donald Trump threatened to slap tariffs on an additional $100 billion in Chinese goods. Losses in the dollar escalated after China's Commerce Ministry spokesman Gao Feng said the country will not hesitate to respond if the United States adds further tariffs. He ruled out negotiations under these conditions. Nonfarm payrolls increased by a fewer-than-expected 103,000 last month, a Labor Department report showed. While the annual growth in average hourly earnings rose to 2.7 percent, it stayed below the 3-percent that economists estimate is needed to lift inflation toward the Federal Reserve's 2-percent target. The dollar index fell 0.4 percent to 90.12, while the euro rose 0.4 percent to $1.2282.
GBP/USD is supported in the range of 1.3962 levels and currently trading at 1.4091 levels. It reached session high at 1.4104 and dropped to session low at 1.4024 levels. Sterling firmed against the dollar on Friday as the dollar dipped after weaker-than-expected data on U.S. job creation and renewed worries about China's reaction to the threat by U.S. President Donald Trump of further tariffs on Chinese goods. The greenback slid against major currencies after China threatened to launch fresh trade measures if the United States followed through on a threat to impose $100 billion in additional tariffs. Sterling rose 0.6 percent against the dollar to $1.4107, its highest level since March 28 before falling back to $1.4087.The bulk of the gains came after a report showing the U.S. economy in March created the fewest jobs in six months. The dollar fell against most major currencies. The pound has rallied since Britain last month secured a transition deal to cover the 21-month period after it leaves the European Union, and the Bank of England confirmed a policy of monetary tightening would be sooner rather than later. That is because of optimism driven by progress in divorce talks and expectations of another Bank of England interest rate hike next month. But some analysts say uncertainties over Brexit remain and that broad dollar weakness linked to the trade dispute between the U.S. and China is keeping sterling above $1.40.
USD/CAD is supported at 1.2700 levels and is trading at 1.2770 levels. It has made session high at 1.2779 and lows at 1.2731 levels. The Canadian dollar edged higher against its U.S. counterpart on Friday as data showing a stronger-than-expected increase in domestic jobs offset a renewed trade spat between the United States and China. Canada created 32,300 jobs in March, Statistics Canada said, topping economists' forecasts for an increase of 20,000. Full-time jobs rose by 68,300, more than recovering from February's decline. The central bank has raised interest rates three times since July. But money markets continued to see chances of another hike by May at less than 50 percent after the data. The U.S. dollar fell on Friday after a report showed the U.S. economy in March created the fewest jobs in six months, although losses were limited by a pickup in wage gains. The price of oil, one of Canada's major exports, slipped on trade tensions. U.S. crude prices were down 0.4 percent to $63.30 a barrel. The Canadian dollar was trading 0.1 percent higher at C$1.2761 to the greenback.
USD/JPY is supported around 106.62 levels and currently trading at 106.88 levels. It peaked to hit session high at 107.41 and made session lows at 106.80 levels. The Japanese yen strengthened against the dollar on Friday as U.S.-China trade tensions and weaker than expected U.S. jobs data increased demand for safe heaven Japanese yen. China warned on Friday it was fully prepared to respond with a "fierce counter strike" of fresh trade measures if the United States follows through on President Donald Trump's threat to slap tariffs on an additional $100 billion in Chinese goods. Tariffs could increase inflation on goods shortages, making it more likely the Federal Reserve will continue raising interest rates, though they also risk hurting economic growth. On the data front, The U.S. economy created the fewest jobs in six months in March as a boost from milder temperatures faded, but a pickup in wage gains pointed to a tightening labor market, which should allow the Federal Reserve to further raise interest rates this year. Nonfarm payrolls increased by 103,000 last month, with construction and retail sectors shedding jobs, the Labor Department said on Friday. That was the smallest gain since last September and followed a 326,000 surge in February, which was the largest in more than two years. The yen and Swiss franc, two currencies investors buy in times of market stress, rallied, with the dollar falling 0.4 percent to 106.88 yen and declining 0.3 percent to 0.9601 franc.
Equities Recap
European shares fell on Friday alongside global stock markets as fears of a worsening trade conflict between the United States and China continued to worry investors.
UK's benchmark FTSE 100 closed down by 0.4 percent, the pan-European FTSEurofirst 300 ended the day down by 0.55 percent, Germany's Dax ended down by 0.7 percent, France’s CAC finished the day down by 0.5 percent.
U.S. stocks dropped more than 2 percent on Friday, with the Dow falling more than 500 points, as U.S. President Donald Trump's latest tariff threat on Chinese imports fueled increasing concern over a U.S. trade war with China.
Dow Jones closed down by 2.34 percent, S&P 500 ended down by 2.21 percent, Nasdaq finished the day down by 2.30 percent.
Treasuries Recap
U.S. Treasury prices gained on Friday as trade tensions mounted between the United States and China and after employers added fewer jobs than expected in March.
Benchmark 10-year notes gained 13/32 in price to yield 2.784 percent, down from 2.832 percent on Thursday.
Commodities Recap
Gold prices rose on Friday, as Wall Street stocks tumbled and the dollar fell as rhetoric from U.S. President Donald Trump and Chinese officials fed worries about a possible trade war, and after U.S. jobs data came in weaker than expected.
Spot gold was up 0.5 percent at $1,332.11 an ounce by 2:01 p.m. EDT (1801 GMT). In early trade, it fell to a session low of $1,321.16, the lowest since March 21. U.S. gold futures for June delivery settled up 0.6 percent at $1,336.10.
Oil prices fell about 2 percent on Friday after U.S. President Donald Trump threatened new tariffs on China, reigniting fears of a trade war between the world's two largest economies that could hurt global growth.
Brent crude futures fell $1.22 to settle at $67.11 a barrel, while U.S. West Texas Intermediate (WTI) crude futures settled down $1.48 at $62.06 a barrel.
