Market Roundup
• US April Non-Farm Payrolls, 263k, 185k forecast, 196k previous
• US April Average Earnings YY, 3.2%, 3.3% forecast, 3.2% previous
• US April Average Workweek Hrs, 34.4, 34.5 forecast, 34.5 previous
• US April Private Payrolls, 236k, 180k forecast, 182k previous
• US April Manufacturing Payrolls, 4k, 10k forecast, -6k previous
• US April Markit Comp Final PMI, 53.0, 52.8 previous
• US April Markit Svcs PMI Final, 53.0, 52.9 previous
• US April ISM N-Mfg PMI, 55.5, 57.0 forecast, 56.1 previous
• US April Unemployment Rate, 3.6%, 3.8% forecast, 3.8% previous
• US March Wholesale Inventories Adv, 0.0%, 0.3% forecast, 0.9% previous
• Some U.S. Fed officials are more worried by weak inflation
• Fed's Williams makes case for 'lower for longer' rates
• Fed's Mester expects U.S. economy to grow 2-2.5 pct in 2019 -CNBC
• N.Y. Fed lifts U.S. Q2 GDP growth view to 2.15%
• Trump says U.S.-China trade deal is going along pretty well
• CA Apr Reserve Assets Total, 84,832 mln, 83,416 mln forecast, 83,401 mln
Looking Ahead - Economic Data
• 6 May( ET 09:45/ GMT 01:45 ) China April Caixin Services PMI, 54.4 previous
Looking Ahead - Events, Other Releases
• 3 May ( ET 19:45 /GMT 23:45) St. Louis Fed's James Bullard, San Francisco Fed's Mary Daly, Dallas Fed's Robert Kaplan and Cleveland Fed's Loretta Mester participate in policy panel in the Hoover Institution in Stanford, California
• 6 May ( ET 06:00 /GMT 10:00) Chicago Fed releases slides and talking points from President Charles Evans's presentation for Bank of Italy in Chicago
• 6 May ( ET 09:30/ GMT 13:30 ) Philadelphia Fed President Patrick Harker speaks on the economic outlook before the 37th Annual Monetary and Trade Conference in Philadelphia
• 6 May ( ET 13:30/ GMT17:30) BoC's Stephen Poloz speaks at the Canadian Credit Union Association and Winnipeg Chamber of Commerce in Canada
Currency Summaries
EUR/USD: The euro rose higher against the U.S. dollar on Friday, after an overall strong U.S. jobs report was overshadowed by drop in the job participation rate. The dollar also came under pressure when a measure of U.S. services activity from the Institute for Supply Management posted a surprise drop to a 20-month low in April. The euro was up 0.21% at $1.11955 after hitting a one-week low at $1.1135. An index that tracks the dollar versus a basket of six major currencies was down 0.35 at 97.49. Immediate resistance can be seen at 1.1224 (21 DMA), an upside break can trigger rise towards 1.1267 (50 DMA).On the downside, immediate support is seen at 1.1136 (Session Low), a break below could take the pair towards 1.101 (Lower Bollinger Bands).
GBP/USD: The British pound jumped higher against dollar on Friday, after leader of Britain's opposition party said parliament must break the deadlock over Brexit and "get a deal done" to exit the European Union. Jeremy Corbyn, leader of Britain's Labour Party, said on Friday that the results of local elections held around the country the previous day should spur lawmakers to find a way to "get a deal done" to leave the EU. The pound surged more than a percent to $1.3175 against greenback, a one-month high.Against the euro, the pound surged 0.9 percent to 84.98 pence, a new one-month high. Immediate resistance can be seen at 1.3179 (Higher Bollinger Band), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3102 (50 DMA), a break below could take the pair towards 1.2980(100 DMA).
USD/CAD:The Canadian dollar strengthened against its U.S. counterpart on Friday, recovering from an earlier one-week low as the U.S. jobs report pointed to solid economic growth but tame inflation that could keep the Federal Reserve from raising interest rates. The price of oil, one of Canada's major exports, rose but was on track for sharp weekly declines as surging U.S. output countered production losses in sanctions-hit Iran and Venezuela. U.S. crude CLc1 prices were up 0.1% on Friday at $61.84 a barrel. The Canadian dollar as trading 0.3% higher at 1.3427 to the greenback, or 74.44 U.S. cents. The currency's strongest level of the session was 1.3431, while it touched its weakest since April 26 at 1.3492.Immediate resistance can be seen at 1.3447 (9 DMA), an upside break can trigger rise towards 1.3508 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3394 (21 DMA), a break below could take the pair towards 1.3358 (50 DMA).
USD/JPY: The dollar weakened against the Japanese yen on Friday, as the dollar weakened after several Federal Reserve officials voiced concerns about low inflation.Nonfarm payrolls increased by 263,000 jobs last month, amid gains in hiring nearly across all sectors, the U.S. Labor Department reported. Economists polled had forecast nonfarm payrolls rising by 185,000 jobs last month.The dollar was 0.10 percent lower versus the Japanese yen at 111.09. Strong resistance can be seen at 111.69 (21 DMA), an upside break can trigger rise towards 112.00 (Psychological level).On the downside, immediate support is seen at 111.00 (50 % retracement level), a break below could take the pair towards 110.83 (April 10th low).
Equities Recap
European shares rose on Friday, recovering from their worst day in six weeks with support from robust jobs data from the United States and strong results from Adidas and HSBC.
The UK's benchmark FTSE 100 closed up by 0.3 percent, FTSEurofirst 300 ended the day up by 0.39 percent, Germany's Dax ended up by 0.4 percent, and France’s CAC finished the up by 0.01 percent.
U.S. stocks rose in a broad-based rally on Friday as stronger-than-expected job growth in April with muted wage gains left investors upbeat about the outlook for the economy and interest rates.
Dow Jones closed up by 0.74 percent, S&P 500 ended up 0.95 percent, Nasdaq finished the day up by 1.56 percent.
Treasuries Recap
U.S. Treasury yields fell from 1-1/2-week highs on Friday as government data showed strong jobs growth in April that matched what many traders had expected, while wage gains were muted.
Benchmark 10-year notes gained 5/32 in price on the day to yield 2.534 percent, down from 2.552 percent on Thursday.
Commodities Recap
Gold was headed for its biggest daily rise in two months on Friday, clawing away from a four-month low hit in the previous session, helped by a pullback in the dollar and as some investors covered their short positions.
Spot gold rose 0.61% to $1,276.61 per ounce as of (2223 GMT), and was set for its biggest percentage gain since March 8. U.S. gold futures settled 0.7% higher at $1,281.30 an ounce.
Oil prices inched up on Friday as strong U.S. economic data boosted demand sentiment and as production losses in sanctions-hit Iran and Venezuela tightened the market.
Brent crude oil futures settled at $70.85 a barrel, rising 10 cents. The global benchmark shed 2.6% for the week, breaking a five-week winning streak.
U.S. West Texas Intermediate (WTI) crude futures closed at $61.94 a barrel, up 13 cents, while losing about 3% percent during the week, its second straight weekly decline.
