Market Roundup
• U.S. Mar Non-Farm Payrolls 196k, 180k forecast, 20k previous, 33k revised
• U.S. Mar Private Payrolls, 182k, 170k forecast, 25k previous, 28k revised
• U.S. Mar Unemployment Rate, 3.8%, 3.8% forecast, 3.8% previous
• U.S. Mar Avg Earnings YY, 3.2%, 3.4% forecast, 3.4% previous
• U.S.-China trade talks to continue next week by video link -Kudlow
• Trump urges Fed to lower U.S. interest rates
• May's Brexit talks with Labour stall, delay request fails to convince EU
• UK govt prepared to pursue changes to the political declaration in order to deliver a deal that is acceptable to both sides- FT
• CA Mar Unemployment Rate, 5.8%, 5.8% forecast,, 5.8% previous
• CA Mar Employment Change, -7.2k, 1.0k forecast,, 55.9k previous
• CA Mar Participation Rate, 65.7%, 65.7% forecast, 65.8% previous
• Argentina peso weakens to new record low on economic uncertainty
Looking Ahead - Economic Data (GMT)
• 7 Apr N/A China Mar FX Reserves (Monthly), 3.095 trillion forecast,, 3.090 trillion previous
• 7 Apr 23:50 Japan Feb Current Account NSA (JPY), 2,678.9 bln forecast,, 600.4 bln previous
• 8 Apr 05:00 Japan Mar Consumer Confidence Index, 41.5 previous
Looking Ahead - Events, Other Releases (GMT)
• 6 Apr 09:10 ECB's Yves Mersch participates in panel at 30th edition of workshop "The Outlook for the Economy and Finance" - Cernobbio, Italy
• 8 Apr N/A Federal Reserve Board conducts open meeting to discuss proposed changes to rules for foreign banks and resolution plans submitted by domestic and foreign firms
• 8 Apr N/A French Finance Minister Bruno Le Maire opens conference on competition policy - Paris
• 8 Apr N/A Roundtable with Tiago Berriel, deputy governor of Central Bank of Brazil - New York
• 8 Apr 12:45 ECB's Chair Andrea Enria moderates panel at Banque de France conference on 'Competition in a globalized world: the role of public policies' - Paris
• 8 Apr 13:00 Norges Bank's Oystein Olsen addresses foreign embassy representatives – Oslo
• 8 Apr 14:00 Federal Reserve board holds open meeting to discuss proposed rules implementing sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act - Washington
• 8 Apr 14:30 Riksbank's Martin Floden participates in panel discussion on developments on mortgage market - Stockholm
• 8 Apr 16:00 Bank of France's Francois Villeroy de Galhau speaks at competition conference
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Friday, as upbeat US payroll data supported greenback. Nonfarm payrolls rose by 196,000 jobs last month. Data for February was revised modestly up to show payrolls rising by 33,000 jobs instead of the previously reported 20,000. February job gains were the smallest since September 2017.The euro was down 0.04 percent at $1.1241. An index that tracks the dollar versus a basket of six major currencies was down 0.12 at 97.41 . Immediate resistance can be seen at 1.13248 (38.2% retracement level), an upside break can trigger rise towards 1.1299 (50% retracement level).On the downside, immediate support is seen at 1.1183 (23.6% retracement level), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: Britain's pound declined against the dollar on Friday, as stronger dollar and Brexit concerns weighed British currency. May wrote to Brussels asking to delay Britain's EU departure until June 30 to allow lawmakers to agree a withdrawal deal. But France and the Netherlands expressed doubt about the plan and that, combined with lingering fears of a no-deal Brexit, sent the pound to a session low of $1.3014, down 0.4 percent on the day. Britain's exit from the EU, nearly three years in the making, is now in doubt because the British parliament cannot decide what exit terms it wants. Immediate resistance can be seen at 1.3134 (38.2% retracement level), an upside break can trigger rise towards 1.3250 (50% retracement level).On the downside, immediate support is seen at 1.2984 (23.6% retracement level), a break below could take the pair towards 1.2900 (Psychological level).
USD/CAD:The Canadian dollar weakened to a one-week low against its U.S. counterpart on Friday, as domestic data showing an unexpected decline in jobs diminished prospects of the Bank of Canada turning more upbeat on the economy.A six-month string of job gains, including blockbuster increases in January and February, had helped bolster investor sentiment for the loonie, offsetting weak gross domestic product data and a slowdown in the global economy that could hurt Canada's exports. The Canadian dollar was last trading 0.3% lower at 1.3392 to the greenback. Immediate resistance can be seen at 1.3400 (50% retracement level), an upside break can trigger rise towards 1.3470 (61.8% retracement level).On the downside, immediate support is seen at 1.3335 (38.2% retracement level), a break below could take the pair towards 1.3293 (April 3rd low).
USD/JPY: The Japanese yen declined against dollar on Friday, as concerns about an economic slowdown were lessened by U.S. labor market data, while optimism that a trade deal between the United States and China was drawing closer also lifted sentiment. U.S. employment growth accelerated from a 17-month low in March as milder weather boosted activity in sectors like construction, which could further allay fears of a sharp slowdown in economic growth. The dollar was 0.05 higher versus the Japanese yen at 111.71. Strong resistance can be seen at 111.98 (38.2% retracement level), an upside break can trigger rise towards 112.81 (23.6% retracement level).On the downside, immediate support is seen at 111.29 (50% retracement level), a break below could take the pair towards 110.61 (61.8% retracement level).
Equities Recap
European shares rounded off a solid week on Friday, as better than expected German and U.S. data bolstered risk appetite, while Irish stocks surged to their best closing level in nearly half a year amid a possible delay to Brexit.
UK's benchmark FTSE 100 closed 0.78 percent, the pan-European FTSEurofirst 300 ended the day up by 0.27 percent, Germany's Dax ended up by 0.2 percent, France’s CAC finished the day down by 0.38 percent.
U.S. stocks rose on Friday, boosted by better-than-expected job growth in March, which eased concerns of an economic slowdown that have periodically roiled financial markets over the past year.
Dow Jones closed up by 0.16 percent, S&P 500 ended up by 0.46 bpercent, Nasdaq finished the day up by 0.60 percent.
Treasuries Recap
The gap between yields of longer-dated and shorter-dated U.S. Treasury yields narrowed on Friday as data showed wage growth slowed in March even as employers added more workers, evidence that inflation remained tame.
The yield on benchmark 10-year Treasury notes was 2.5007%, down 0.009 basis point. It hit a two-week high of 2.544% shortly after the release of the March jobs report.
Commodities Recap
Gold eased on Friday as Wall Street gained on data pointing to a rebound in jobs growth in the United States, but bullion's losses were limited by a simultaneous slowdown in wage growth.
Spot gold slipped 0.1 percent to $1,290.75 per ounce by 1:40 pm EDT (1740 GMT). Prices touched their lowest since Jan. 25 at $1,280.59 on Thursday. The metal was down about 0.1 percent so far for the week.U.S. gold futures settled 0.1 percent higher at $1,295.6 an ounce.
Oil prices gained 1.5 percent on Friday as strong U.S. employment data tempered fears about weakening global crude oil demand, and on expectations that an escalating conflict in Libya could tighten oil supplies.
Brent crude futures settled at $70.34 a barrel, up 94 cents, or 1.35 percent. The session high of $70.46 was the strongest since Nov. 12.
U.S. West Texas Intermediate (WTI) crude settled at $63.08 a barrel, up 98 cents, or 1.58 percent. Earlier in the session, WTI hit $63.24, the highest since Nov. 6.
