Market Roundup
•Swiss Apr Unemployment Rate n.s.a 2.3%, 2.2% forecast,2.4% previous
•Swiss Apr Unemployment Rate s.a 2.2%,2.2% forecast, 2.2% previous
•UK Halifax House Price Index (YoY) 10.8%,11.0% previous
•UK Apr Halifax House Price Index (MoM) 1.1%, 0.7% forecast, 1.4% previous
•German Mar Industrial Production (MoM) -3.9%, -1.0% forecast, 0.2% previous
•French Non-Farm Payrolls (QoQ) (Q1) 0.3%,0.4% previous
•UK Apr Construction PMI 58.2, 58.0 forecast, 59.1 previous
•Canada Apr Part Time Employment Change 47.1K,-20.3K previous
•Canada Apr Full Employment Change -31.6K, 92.7K previous
•Apr US Average Hourly Earnings (MoM) 0.3%,4% forecast, 0.4% previous
•Apr US Nonfarm Payrolls 428K, 391K forecast, 431K previous
•Apr US Private Nonfarm Payrolls 406K, 385K forecast, 426K previous
•Apr US Manufacturing Payrolls 55K,35K forecast, 38K previous
•Canada Apr Unemployment Rate 5.2%, 5.2% forecast,5.3% previous
•US Apr Unemployment Rate 3.6%,3.5% forecast, 3.6% previous
•US Apr Average Hourly Earnings (YoY) (YoY) 5.5%, 5.5% forecast, 5.6% previous
•US Participation Rate 62.2%, 62.4% previous
•14:00 Canada Apr Ivey PMI 60.0 forecast, 74.2 previous
•14:00 Canada Apr Ivey PMI n.s.a 68.4 previous
•17:00 U.S. Baker Hughes Oil Rig Count 552 previous
•17:00 U.S. Baker Hughes Total Rig Count 698 previous
•19:00 U.S. Mar Consumer Credit 25.00B forecast, 41.82B previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 UK BOE MPC Member Catherine L Mann
Fxbeat
EUR/USD: The euro strengthened against the U.S. dollar on Friday as European Central Bank members talking up a return to positive rates this year boosted euro. The single currency was lifted by comments made by French central bank chief Francois Villeroy de Galhau, who said the ECB should raise its deposit rate back into positive territory this year. The ECB has been moving slowly to remove support this year, but record inflation has prompted more members to call for action. ECB policymaker Joachim Nagel, who heads Germany’s Bundesbank, also indicated support for a move sooner rather than later in separate comments on Friday.Immediate resistance can be seen at 1.0608 (38.2%fib), an upside break can trigger rise towards 1.0703(50%fib).On the downside, immediate support is seen at 1.0490(23.6%fib), a break below could take the pair towards 1.0422 (LowerBB).
GBP/USD: Britain’s pound weakened against dollar on Friday a day after the Bank of England sent a stark warning that Britain risks a double-whammy of a recession and inflation above 10%. The BoE maintained its economic growth projection for the year at 3.75% but cut its estimates for 2023 to reflect a contraction of 0.25% from a previous estimate of 1.25% growth. Additionally, the central bank reduced its growth projection for 2024 to 0.25% from an earlier 1.0%.While BoE Governor Andrew Bailey said the forecasts did reflect a technical definition of recession, the economy is still in for a very sharp slowdown. Immediate resistance can be seen at 1.2426(38.2%fib), an upside break can trigger rise towards 1.2468(5DMA).On the downside, immediate support is seen at 1.2297 (23.6%fib), a break below could take the pair towards 1.2220(Lower BB).
USD/CHF: The dollar strengthened against Swiss franc on Friday as the greenback firmed ahead upbeat U.S. jobs report that is likely to back the case for aggressive monetary policy tightening in the United States. Nonfarm payrolls rose by 428,000 jobs last month, the Labor Department said on Friday. Data for March was revised down to 428,000 jobs added from 431,000. Economists polled by Reuters had forecast payrolls rising by 391,000 jobs. The unemployment rate was unchanged at 3.6%.The jobs-workers gap widened to an all-time high of 3.4% of the labor force from 3.1% in February. Average hourly earnings increased 0.3% after advancing 0.5% in March. Immediate resistance can be seen at 0.9890 (23.6 % fib), an upside break can trigger rise towards 0.9924(Higher BB).On the downside, immediate support is seen at 0.9800(5DMA), a break below could take the pair towards 0.9755(38.2 % fib ).
USD/JPY: The dollar steadied against yen on Friday as aggressive monetary policy tightening in the United States boosted dollar. U.S. job growth increased more than expected in April, underscoring the economy's strong fundamentals despite a contraction in gross domestic product in the first quarter.The safe haven greenback has broadly strengthened in recent weeks in response to global recession fears, and on bets that the Federal Reserve will tighten monetary policy faster than others to stem runaway inflation. Strong resistance can be seen at 130.74(23.6%fib), an upside break can trigger rise towards 131.70(Higher BB).On the downside, immediate support is seen at 130.00(5DMA), a break below could take the pair towards 129.18(38.2%fib).
Equities Recap
European stocks were on course for their worst week in two months on Friday following a carnage on Wall Street as investors feared that bigger interest rate hikes would be needed to tame decades-high inflation.
At (GMT 01:30 ),UK's benchmark FTSE 100 was last trading down at 1.19 percent, Germany's Dax down by 1.39 percent, France’s CAC finished was down by 1.57 percent.
Commodities Recap
Gold prices were on track for a third straight weekly decline on Friday as investors fretted over the prospects of aggressive rate hikes from the U.S. Federal Reserve, though a slight pullback in dollar helped the precious metal to tick higher on the day.
Spot gold rose 0.3% to $1,883.31 per ounce by 1147 GMT, but was down 0.7% for the week. U.S. gold futures were up 0.4% at $1,883.50.
Oil prices climbed for a third straight session on Friday, shrugging off concerns about global economic growth as impending European Union sanctions on Russian oil raised the prospect of tighter supply.
Brent futures rose $1.75, or 1.58%, to $112.65 per barrel by 1159 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $1.57, or 1.45%, to $109.83 a barrel.
