America’s Roundup: Dollar gains vs yen after U.S. jobs report, Wall Street jumps ,Gold eases, Oil rises 5% in second weekly gain on output cuts, demand hopes-May 9th,2020

Market Roundup

• Nonfarm payrolls dive 20.5 million in April

• Steepest fall in U.S. payrolls since the Great Depression

• Gold set for a more than 1% gain this week

• Canada April Housing Starts 166.4K,  110.0K forecast, 195.2K previous    

• Canada April Full Employment Change -1,472.0K,   -474.0K previous 
   
• Canada April Employment Change -1,993.8K,-4,000.0K forecast, -1,010.7K previous

• Canada April Part Time Employment Change-521.9K,   -536.7K previous

• US April Average Hourly Earnings (MoM) 4.7%, 0.4% forecast, 0.4% previous

• US April Private Nonfarm Payrolls -19,520K,  -21,050K forecast, -713K previous

• US April Manufacturing Payrolls-1,330K, -2,500K forecast, -18K previous

• US April Nonfarm Payrolls  -20,500K, -22,000K forecast, -701K previous

• US April Government Payrolls  -980.0K, 12.0K previous

• Canada  April Unemployment Rate 13.0%  18.0% forecast,7.8% previous

• Canada  April Participation Rate 59.8%    , 65.1% forecast,  63.5% previous  
 
• US April Average Weekly Hours 34.2, 33.7 forecast, 34.2 previous    

• US April Unemployment Rate  14.7%, 16.0% forecast,4.4% previous    

• Canada March Building Permits (MoM) -13.2%, -20.0%    forecast, -7.3% previous    

• US April Participation Rate 60.2%,   62.7% previous    

• US April U6 Unemployment Rate 22.8%,  8.7% previous

• US Average Hourly Earnings (YoY) (YoY) 7.9%, 33% forecast, 3.1% previous

• Brazil Auto Production (MoM)  -67.7%,-7.0% previous

• Brail Auto Sales (MoM) -99.0%,  -18.6% previous

• US March Wholesale Trade Sales (MoM)  -5.2%,  -0.8% previous

• US Wholesale Inventories (MoM) -0.8%,  -1.0%,-0.7%    previous

Looking Ahead - Economic Data (GMT)

•No data ahead

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro gained against dollar on Friday, on hopes of further stimulus measures from major central banks to cushion economic damage caused by the novel coronavirus, while better than feared U.S. jobs data limited dollars upside. Data showed U.S. job losses in April hit 20.5 million, compared with expectations of 22 million. The unemployment rate was 14.7% lower than the market forecast of 16%. At (GMT 21:45), the euro was last trading up 0.03% at 1.0835. Immediate resistance can be seen at 1.0870 (9 DMA), an upside break can trigger rise towards 1.0884 (50% fib).On the downside, immediate support is seen at 1.0819 (38.2% fib), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD:  Sterling strengthened against dollar on Friday as risk assets cheered a surprise rise in China's April exports, hoping that the world's second-largest economy may be able to recover sooner than expected from a pandemic-induced lockdown.  The pound was broadly stronger against the dollar, was up 0.19% at $1.2378.  Immediate resistance can be seen at 1.2378 (5 DMA), an upside break can trigger rise towards 1.2426 (11 DMA).On the downside, immediate support is seen at 1.2347 (May 8th low), a break below could take the pair towards 1.2300(Psychological level).

USD/CAD: The Canadian dollar added to the week's rally against its U.S. counterpart on Friday as signs of easing U.S.-China frictions bolstered investor sentiment and domestic data showed a plunge in jobs that was about half the number expected. The Canadian dollar was trading 0.2% higher on the day at 1.3938 to the greenback. The currency touched its strongest intraday level since April 30, at 1.3907, and was up 0.8% for the week. Immediate resistance can be seen at 1.4034 (5 DMA), an upside break can trigger rise towards 1.4100 (Psychological level).On the downside, immediate support is seen at 1.3009 (Daily low ), a break below could take the pair towards 1.3850 (30th April low ).

USD/JPY: The dollar rose against the Japanese yen on Friday after data showed the world’s largest economy lost fewer jobs than expected last month on fallout from the coronavirus pandemic. Friday’s data showed U.S. job losses in April hit 20.5 million, compared to expectations of 22 million. The unemployment rate was 14.7%, lower than the market forecast of 16%.In afternoon trading, the dollar rose 0.4% against the yen to 106.62 yen. Immediate resistance can be seen at 106.38 (5 DMA), an upside break can trigger rise towards 106.72 (11 DMA ).On the downside, immediate support is seen at 106.21(Daily low), a break below could take the pair towards 106.00  (Psychological level). 

Equities Recap

European shares closed higher on Friday, clocking weekly gains as signs of improving U.S.-China relations provided a fresh dose of optimism for investors counting on the easing of lockdowns to spark a recovery in global growth.

The UK's benchmark FTSE 100 closed up by 1.40 percent, Germany's Dax ended up  by 1.35 percent, and France’s CAC finished the up by 1.07 percent.

Wall Street’s main indexes rallied on Tuesday as healthcare stocks jumped, oil prices surged and a number of countries and U.S. states eased coronavirus-induced restrictions in an attempt to revive their economies.

Dow Jones closed up at 1.94 percent, S&P 500 ended up 1.64 percent, Nasdaq finished the day up by 1.58 percent.

Treasury Recap

U.S. Treasury yields rose on Friday after the jobs report for April was slightly less dire than expected, while fed funds futures priced in the probability of negative rates later this year as investors worried about when the economy will be able to rebound from the coronavirus-induced slump.

Benchmark 10-year Treasury yields rose 4 basis points on the day to 0.6688%.

Commodities Recap

Gold on Friday eased from its highest in nearly two weeks, as investors grew hopeful about economies reopening after COVID-19 lockdowns, but a continued wave of central bank stimulus kept bullion on course for a weekly gain.

Spot gold fell 0.8% to $1,704.53 per ounce by 2:31 p.m. EDT (1831 GMT) after hitting $1,722.56, its highest since April 27. Prices were up 0.3% for the week.

Oil prices settled 5% higher on Friday in their second consecutive week of gains as U.S. producers cut production with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns intended to halt the coronavirus pandemic.

Brent crude settled up $1.51, or 5.1%, at $30.97 a barrel. U.S. West Texas Intermediate crude futures (WTI) gained $1.19, or 5%, to $24.74 a barrel.