Market Roundup
• US job market flexes muscle NFP + 215k in March, Avg hourly earnings +7 cents, U6/part rate higher.
• US Markit Mar Mfg PMI final 51.5 v 51.4 in Feb, U.S. Feb construction spending -0.5%.
• US ISM Mfg Index rises to 51.8 in Mar from 49.5, prices paid 51.5 from 38.5, new orders 58.3 from 51.5.
• University of Michigan Mar sentiment final 91 vs 90.5 forecast, 90 previous, 1-5 yr inflation steady at 2.7%.
• Fed's Mester: mum on April hike, encouraged by March jobs report.
• Fed's Mester: appropriate to stay on gradual normalization path -Fox Business.
• U.S. economy seen growing 0.7 pct in first quarter - Atlanta Fed.
• U.S. stocks, USD rise after solid U.S. jobs data; Doubts on output freeze deal, stronger USD hit oil.
• Mexico central bank unanimous in rate hold, remain vigilant on FX effect on inflation-minutes.
Looking Ahead - Economic Data (GMT)
• 01:00 Australia TD MI Inflation Gauge * Mar -0.20%-previous
• 01:30 Australia Building Approvals* Feb forecast 2%, -0.08- previous
• 01:30 Australia Private House Approvals* Feb -0.06- previous
Looking Ahead - Events, Other Releases (GMT)
• No Significant Events
EUR/USD is likely to find support at 1.13006 levels and currently trading at 1.1392 levels. The pair has made session high at 1.1442 and hit lows at 1.1334 levels. Euro initially rose against the greenback hit, after US employment data was released, by US Labor Department. But later, the euro gave up gains against the US dollar, as sellers stepped in following a better than expected US Nonfarm Payrolls which overshadowed weak Private Nonfarm Payrolls and supported views that the Federal Reserve will soon hike interest rates. Average hourly earnings edged up to 0.3 in March, data from the Labor Department showed. The euro weakened to $1.1335 following the U.S. jobs data after earlier hitting a 5-1/2-month high of $1.1437. The euro rebounded later in the session, however, was last up 0.14 percent against the dollar at $1.1394. The dollar index , which measures the greenback against a basket of six major currencies, was last up 0.42 percent at 94.975 after hitting a session low of 94.334 before the U.S. data. The index fell more than 4 percent in the first quarter
GBP/USD is supported in the range of 1.4148 and currently trading at 1.4223 levels. It reached session high at 1.4344 and hit low at 1.4168 levels. Sterling slipped to hit four days low against the dollar on Friday as the monthly U.S. employment report led investors to bets in favour of the greenback, leaving the pound on track for lowest since March 29th. On the data front, The Markit/CIPS manufacturing Purchasing Managers' Index (PMI) rose to 51.0 last month, short of economists' forecasts of 51.2. The survey showed new export orders contracting while the manufacturing sector stagnated. Sterling fell 1.1 percent to $1.4195, with losses accelerating after a better-than-expected U.S. jobs report that pushed the dollar higher. The euro was up 1.2 percent against the pound at 80.20 pence, its highest since November 2014. That put trade-weighted sterling at 84.3, its lowest since December 2013. The index endured its worst quarter since late 2008 between January and March.
USD/CAD is supported at 1.3300 levels and is trading at 1.3312 levels. It has made session high at 1.3427 and lows at 1.3312 levels. The Canadian dollar weakened to a three-day low against its U.S. counterpart on Friday as crude oil prices slumped by 4 percent and stronger-than-expected U.S. jobs data weighted on the Canadian dollar. The U.S. dollar extended its gains against the loonie after the release of solid U.S. employment data that could allow a cautious Federal Reserve to gradually raise interest rates this year. Nonfarm payrolls rose by 215,000 last month and the unemployment rate edged up to 5.0 percent from an eight-year low of 4.9 percent, the Labor Department said on Friday. The jobless rate increased as more people continued to enter or re-enter the labor market, a sign of confidence in the job market. Average hourly earnings gained seven cents after slipping in February. The currency's strongest level of the session was C$1.2969, while it touched its weakest since at March 29 at C$1.3134.
USD/JPY is supported around 111.00 levels and currently trading at 111.60 levels. It has made session high at 112.46 and low at 111.60 levels. The pair edged higher immediately after US jobs data was released by The U.S. Labor Department to hit daily high at 112.46 levels. But, later in early afternoon the dollar slipped from 112.46 levels to hit lows at 111.60, as investors closed there short buy position and sold off the greenback against Japanese yen. The pair was trading in the Late New York session around 111.70 levels. Meanwhile, U.S. employment gains surged in March, the clearest sign yet of labor market strength that could further ease fears the economy was heading into recession and allow the Federal Reserve to gradually raise interest rates this year. U.S. employers added 215,000 jobs in March, the report showed, against expectations for 205,000. U.S. interest rate futures suggested traders are now betting the Fed will next raise rates as soon as November, versus December ahead of the report. The dollar was last down 0.18 percent against the yen at 112.36 yen after touching a more than one-week low of 111.86 yen in volatile trading just after the U.S. jobs data.
Equities Recap
European equities tumbled to a one-month low on the first trading day of the quarter on Friday, with energy stocks hit by weaker oil prices while Osram retreated after it was dropped from Apple's top supplier list.
Britain's blue-chip FTSE 100 index closed down by 0.5 percent, France's benchmark CAC-40 index closed down by 1.51 percent, Germany's DAX ended down 1.7 percent, meanwhile the pan-European Eurofirst 300 index was down up 1.51 percent
Wall Street extended a seven-week rally on Friday after upbeat U.S. jobs and factory data hinted at stronger corporate earnings without increasing concerns of potential U.S. interest rate hikes.
Dow Jones closed up by 0.62 percent, S&P 500 ended up by 0.64 percent, Nasdaq finished the day up by 0.91 percent.
Treasuries Recap
U.S. short-dated Treasury yields rose on Friday from one-month lows in choppy trading as stronger-than-expected labor and factory data in March supported the view the Federal Reserve would raise interest rates later this year.
Two-year Treasury yield, which is most sensitive to changes in traders' view on Fed policy, last traded up 4 basis points at 0.772 percent. It touched a one-month low of 0.725 percent on Thursday
The U.S. benchmark 10-year Treasury note was unchanged in price for a yield of 1.786 percent.
Commodities Recap
Gold fell more than 1 percent on Friday after U.S. March payrolls data beat expectations, allaying some fears about the U.S. economy and stoking speculation about the timing of likely interest rate hikes by the Federal Reserve this year.
Spot gold was down 1 percent at $1,220.07 an ounce by 2:49 p.m. EDT (1849 GMT), having earlier touched a low of $1,208.45, while U.S. gold futures for June delivery settled down $12.1 an ounce at $1223.50.
Oil tumbled about 4 percent on Friday, after a Saudi prince reportedly said the kingdom will not freeze output without Iran and other major producers doing so, and data showed the global crude glut was likely to grow.
Brent crude for June delivery, the new front month contract for the global benchmark , settled down $1.68, or 4.1 percent, at $38.67 a barrel. It fell 3 percent for the week.
U.S. crude's front-month settled down $1.55, or 4 percent, at $36.79.
