Market Roundup
•U.S. jobs growth slows sharply in April amid labor shortages
•Canada April Full Employment Change -129.4K ,175.4K previous
•Canada April Part Time Employment Change-77.8K, 127.8K previous
•US Average Apr Hourly Earnings (MoM) 0.7%,0.1% forecast, -0.1% previous
•US Apr Private Nonfarm Payrolls 218K,893K forecast, 780K previous
•US Apr Nonfarm Payrolls 266K,978K forecast, 916K previous
•US Apr Manufacturing Payrolls -18K,55K forecast, 53K previous
•Canada Apr Unemployment Rate8.1%, 7.8%forecast, 7.5% previous
•US Apr Government Payrolls 48.0K, 136.0K previous
•US Apr Participation Rate 64.9%,65.2% previous
•US Apr Average Weekly Hours 35.0, 34.9 forecast, 34.9 previous
•US Apr Unemployment Rate 6.1%, 5.8% forecast, 6.0% previous
•US Apr Average Hourly Earnings (YoY) (YoY) 0.3%, -0.4% forecast,4.2% previous
•US Apr Participation Rate 61.7%, 61.5% previous
•US Apr U6 Unemployment Rate 10.4%,10.7% previous
•Canada Apr Employment Change -207.1K,-175.0K forecast, 303.1K previous
•Canada Apr Ivey PMI n.s.a 59.9,67.3 previous
•Canada Apr Ivey PMI 60.6, 60.5 forecast, 72.9 previous
•US Mar Wholesale Trade Sales (MoM) 4.6%, 1.0% forecast,-0.8% previous
•US Wholesale Inventories (MoM) 1.3% ,1.4% previous
•Russia April CPI (MoM) 0.6%, 0.6% forecast, 0.7% previous
•Russia April CPI (YoY) 5.5%,5.5% forecast, 5.8% previous
Looking Ahead - Economic Data (GMT)
•No significant data
Looking Ahead - Economic events and other releases (GMT)
• No events ahead
Fx Beat
EUR/USD: The euro rose on Friday as greenback came under pressure after weak U.S. jobs data for April tamped down fears that a booming economy would spark inflation and higher interest rates. The data eased worries the Federal Reserve would reduce its massive stimulus program anytime soon and was seen as helping President Joe Biden to push through his plans for trillions of dollars in new spending on infrastructure and education. Nonfarm payrolls increased by only 266,000 jobs last month. Data for March was revised down to show 770,000 jobs added instead of 916,000 as previously reported.The euro was up 0.75% against the greenback at $1.21555. Immediate resistance can be seen at 1.2198(Higher BB), an upside break can trigger rise towards 1.2234(Higher BB).On the downside, immediate support is seen at 1.2135(38.2%fib), a break below could take the pair towards 1.2050(50%fib).
GBP/USD: The pound rose hit a one-week high versus the dollar after data from the Labor Department showed U.S. employers hired fewer workers than expected in April. In earlier trade, sterling was unable to hold on to gains made on Thursday after the Bank of England slowed the pace of its trillion-dollar bond-purchasing programme. But by 1851 GMT, the pound was 0.6% higher at $1.3989 versus the weakening dollar. Immediate resistance can be seen at 1.4009(23.6%fib), an upside break can trigger rise towards 1.4056(Higher BB).On the downside, immediate support is seen at 1.3882 (38.2%fib), a break below could take the pair towards 1.3835 (30DMA).
USD/CAD: The Canadian dollar strengthened against the weaker greenback on Friday as jobs data for both Canada and the United States fell short of estimates. Canada lost 207,100 jobs in April as fresh restrictions to contain a variant-driven third wave of COVID-19 weighed on employers, Statistics Canada data showed.In the United States, data for the same month showed employers hiring far fewer workers than expected, likely frustrated by labor shortages . The loonie was up at 1.2124 to the greenback. For the week, it was up 1.2%, its sixth straight weekly advance. Immediate resistance can be seen at 1.2223(5DMA), an upside break can trigger rise towards 1.2312 (38.2%fib).On the downside, immediate support is seen at 1.2123 (23.6%fib), a break below could take the pair towards 1.2069(Lower BB).
USD/JPY: The dollar declined against the yen on Friday after U.S. jobs data for April came in well below expectations. Nonfarm payrolls increased by only 266,000 jobs last month after rising by 770,000 in March, the Labor Department said in its closely watched employment report. Economists polled by Reuters had forecast a rise of 978,000 jobs. The dollar was down 0.63% at 90.297 against a basket of major currencies, having dropped as low as 90.209, its lowest since Feb. 26, following the payrolls data. Strong resistance can be seen at 108.81 (38.2%fib), an upside break can trigger rise towards 109.24(50%fib).On the downside, immediate support is seen at 108.30(23.6%fib), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European stocks closed at a record high on Friday, marking strong weekly gains as positive economic data and upbeat earnings underpinned hopes of a swift economic recovery from the COVID-19 pandemic.
UK's benchmark FTSE 100 closed up by 0.75 percent, Germany's Dax ended down by 1.34 percent, France’s CAC finished the day up by 0.45 percent.
The Dow and S&P 500 hit record closing highs on Friday while registering gains for the week, and the Nasdaq recovered after U.S. jobs data eased concerns over prospects for rising rates.
Dow Jones closed up by 0.66% percent, S&P 500 closed up by 0.74% percent, Nasdaq settled upby 0.88% percent.
Treasuries Recap
U.S. Treasury yields rebounded after hitting two-month lows on Friday following data that showed a much smaller-than-expected jobs gain in April, with yields on longer-dated debt rising for the session as investors remained confident the economy was on the road to a strong recovery.
The benchmark 10-year yield, which dropped to 1.469%, the lowest since March 4, was last up 1.6 basis points on the day at 1.5771%, holding below a 14-month high of 1.776% reached on March 30.
Commodities Recap
Gold jumped more than 1% as unexpected drop in U.S. jobs growth in April hastened a retreat in the dollar and Treasury yields.
Spot gold rose 0.84% to $1,830.41 per ounce by 2:03 p.m EDT (1803 GMT) and was up 3.5% so far this week, its best since November 2020.
Oil prices eased on Friday but were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India weighed.
Brent crude futures were down 12 cents, or 0.2%, at $67.97 a barrel by 1343 GMT and U.S. West Texas Intermediate (WTI) crude fell by 10 cents, or 0.2%, to $64.61.
