Market Roundup
•German Apr Imports (MoM) 3.1%, 0.2% forecast, 3.4% previous
•German Apr Exports (MoM) 4.4%,1.5% forecast,-3.3% previous
•German Apr Trade Balance 3.5B,1.6B forecast, 3.2B previous
•Italian May Composite PMI 52.4,54.5 previous
•Italian May Services PMI 53.7,54.5 forecast, 55.7 previous
•French May Services PMI 58.3, 58.4 forecast, 58.4 previous
• German May Services PMI 55.0,56.3 forecast,56.3 previous
•EU May Services PMI 56.1,56.3 forecast, 56.3 previous
•EU May Markit Composite PMI 54.8,54.9 forecast, 54.9 previous
•EU Apr Retail Sales (MoM) -1.3%,0.3% forecast,-0.4% previous
Looking Ahead Economic Data (GMT)
•12:30 US May Manufacturing Payrolls 40K forecast,55K previous
•12:30 Canada Labor Productivity (QoQ) (Q1) -0.5% forecast, -0.5% previous
• 12:30 US May U6 Unemployment Rate 7.0% previous
• 12:30 US May Average Hourly Earnings (YoY) (YoY) ) 5.2% forecast, 5.5% previous
• 12:30 US May Unemployment Rate 3.5% forecast,3.6% previous
• 12:30 US May Nonfarm Payrolls 325K forecast,428K previous
• 12:30 US May Private Nonfarm Payrolls 325K forecast, 406K previous
• 12:30 US May Average Hourly Earnings (MoM) 0.4% forecast, 0.3% previous
• 13:45 US May Services PMI 53.5 forecast, 55.6 previous
• 13:45 US May Markit Composite PMI 53.8 forecast,56.0 previous
• 14:00 US May ISM Non-Manufacturing New Orders 54.6 previous
• 14:00 US May ISM Non-Manufacturing Employment 49.5 previous
• 14:00 US May ISM Non-Manufacturing PMI 56.4 forecast,57.1 previous
• 14:00 US May ISM Non-Manufacturing Business Activity 59.1 previous
•17:00 US U.S. Baker Hughes Total Rig Count 727 previous
•17:00 U.S. Baker Hughes Oil Rig Count 574 previous
•14:30 US FOMC Member Brainard Speaks
Looking Ahead - Events, Other Releases (GMT)
•14:30 US FOMC Member Brainard Speaks
Fxbeat
EUR/USD: The euro declined on Friday as soft Eurozone retail sales weighed on euro ahead of US jobs data. Eurozone retail sales fell 1.3 per cent from a month before, the first monthly drop since the start of the year. On a year-on-year basis, sales rose 3.9 per cent. Economists polled had expected a 0.3 per cent monthly rise and a 5.4 per cent yearly increase. The retail sales figure followed on from stronger than expected economic data from Germany, with the country’s exports rising by 4.4 per cent between March and April .Immediate resistance can be seen at 1.0748(38.2%fib), an upside break can trigger rise towards 1.0835(50%fib).On the downside, immediate support is seen at 1.0644(23.6%fib), a break below could take the pair towards 1.0606(21DMA).
GBP/USD: The British pound dipped against the U.S. dollar on Friday as investors awaited latest US labour market report, which will offer further clues about how aggressively the Federal Reserve may raise interest rates to curb inflation. Markets are on edge ahead of crucial monthly jobs data in the United States and signs that a combination of high oil prices and higher interest rates are starting to tighten conditions in the global economy and the United States. The British pound eased 0.10% against the dollar to $1.2562. Immediate resistance can be seen at 1.2664(50%fib),an upside break can trigger rise towards 1.2748 (Higher BB).On the downside, immediate support is seen at 1.2519(38.2%fib), a break below could take the pair towards 1.2466(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as investors awaited U.S. non-farm payrolls data to make bets about central bank tightening, while also bracing for any change in stance from the Swiss National Bank. The Swiss franc is around levels hit in mid-May after Swiss National Bank president Thomas Jordan signalled the central bank might act if inflation pressures continue. The Swiss National Bank targets an annual inflation rate of 0-2%, but price rises have been outside this range since February, putting pressure on the central bank to start hiking interest rates.The SNB has so far stuck to its ultra-loose policy but Swiss prices increased to their highest level in nearly 14 years in May. Immediate resistance can be seen at 0.9610 (5DMA), an upside break can trigger rise towards 0.9651 (23.6%fib).On the downside, immediate support is seen at 0.9561 (38.2%fib), a break below could take the pair towards 0.9486 (50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as risk appetite picked up ahead of U.S. jobs data later in the day. Investors will be watching U.S. nonfarm payrolls data due at 1230 GMT that could give cues on the Federal Reserve’s pace of monetary policy tightening in the second half of the year The yen was not far off its 10-year low versus the greenback at around 130 as the Bank of Japan (BoJ) stuck to its super-low interest rate policy stance. Strong resistance can be seen at 131.19 (Higher BB), an upside break can trigger rise towards 131.69(23.6%fib).On the downside, immediate support is seen at 129.61 (38.2%fib), a break below could take the pair towards 128.36(9DMA).
Equities Recap
European dipped on Friday as investors awaited U.S. non-farm payrolls data to make bets about central bank tightening, while also bracing for any change in stance from the European Central Bank at its meeting next week.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading down at 0.98 percent, Germany's Dax was down by 0.01 percent, France’s CAC finished was down by 0.05 percent.
Commodities Recap
Gold prices were headed for a third straight weekly gain on Friday, although they eased slightly on the day as investors waited for the key U.S. jobs report and as Treasury yields ticked higher.
Spot gold was 0.2% lower at $1,864.49 per ounce by 0953 GMT, after hitting its highest level since May 9 at $1,873.79. Gold prices have risen about 0.6% so far this week.U.S. gold futures also eased 0.2% to $1,867.20.
Oil slipped on Friday after OPEC+ decided to increase production targets by slightly more than planned, although tight global supply and rising demand as China eases COVID restrictions limited the decline.
Brent crude fell 85 cents, or 0.7%, to $116.76 a barrel by 0925 GMT, after rising $2 intra-day on Thursday. U.S. West Texas Intermediate (WTI) crude slipped 88 cents, or 0.8%, to $115.99.
