Market Roundup
•Canada May Part Time Employment Change 62.4K, 50.3K previous
•US May Average Hourly Earnings (MoM) 0.4%, 0.3% forecast,0.2% previous
•Canada May Full Employment Change -35.6K , 40.1K previous
•US May Private Nonfarm Payrolls 229K ,170K forecast,167K previous
•US Nonfarm Payrolls 272K ,182K forecast,175K previous
•US May Manufacturing Payrolls 8K, 5K forecast,8K previous
•Canada May Unemployment Rate 6.2% ,6.2% forecast,6.1% previous
•US May Average Weekly Hours 34.3, 34.3 forecast,34.3 previous
•US May Unemployment Rate 4.0% ,3.9% forecast,3.9% previous
•US May Average Hourly Earnings (YoY) (YoY) 4.1% ,3.9% forecast,3.9% previous
•Canada May Employment Change 26.7K, 24.8K forecast,90.4K previous
•US May Participation Rate 62.5% ,62.7% previous
•US May U6 Unemployment Rate 7.4% ,7.4% previous
•US Apr Wholesale Inventories (MoM) 0.1%, 0.2% forecast,-0.4% previous
•US Apr Wholesale Trade Sales (MoM) 0.1%, -1.3% previous
•U.S. Baker Hughes Oil Rig Count 492, 496 previous
•U.S. Baker Hughes Total Rig Count 594 ,600 previous
• U.S Atlanta Fed GDPNow (Q2) 3.1% ,2.6% forecast,2.6% previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releses(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro slipped lower against dollar on Friday after data showed the world's largest economy created a lot more jobs than expected last month, suggesting that the Federal Reserve could take time in starting its easing cycle this year.U.S. nonfarm payrolls expanded by 272,000 jobs last month, data showed, while revisions showed 15,000 fewer jobs created in March and April combined than previously reported. Economists polled by Reuters had forecast payrolls advancing by 185,000.The unemployment rate, however, edged up to 4% from 3.9% in April, breaching a level that had previously held for 27 straight months. The euro dropped 0.8% versus the dollar to $1.0803 . On the week, Europe's single currency slid 0.4%, its largest weekly percentage loss since the week starting April 8. Immediate resistance can be seen at 1.0831(38.2%fib), an upside break can trigger rise towards 1.0903(23.6%fib).On the downside, immediate support is seen at 1.0780(Lower BB), a break below could take the pair towards 1.0766(50% fib).
GBP/USD: The pound fell against the dollar on Friday after stronger-than-expected U.S. jobs data suggested a robust economy, raising concerns that the Federal Reserve might delay cutting interest rates. U.S. nonfarm payrolls increased by 272,000 jobs last month, exceeding the forecast of 185,000. Revisions showed 15,000 fewer jobs were created in March and April combined than previously reported. Traders now see a 56% chance of a September rate reduction, according to the CME's FedWatch tool. Investors will eye U.S. inflation data next week and the Federal Reserve's two-day policy meeting, which ends on June 12. Money market pricing just after the payrolls data implied traders saw the Fed only starting to cut rates from their 23-year high of 5.25-5.5% by November. Immediate resistance can be seen at 1.2726 (38.2%fib), an upside break can trigger rise towards 1.2817(38.2% fib).On the downside, immediate support is seen at 1.2685(May 30th low), a break below could take the pair towards 1.2645(50% fib).
USD/CAD: The Canadian dollar fell to a near one-month low against its U.S. counterpart on Friday as stronger-than-expected U.S. jobs data boosted the greenback, while a domestic jobs report gave mixed signals on prospects of further Bank of Canada rate cuts. The U.S. economy created far more jobs than expected in May and annual wage growth reaccelerated, reducing the likelihood the Federal Reserve will be able to start rate cuts in September.Canada's jobless rate edged up to a more than two-year high of 6.2% in May and wage growth gathered pace, giving diverging signals on how the Bank of Canada will digest the reading for its next rate decision in July. The loonie was trading 0.6% lower at 1.3750 to the U.S. dollar, or 72.73 U.S. cents, after touching its weakest since May 8 at 1.3758.Immediate resistance can be seen at 1.3765 (23.6% fib), an upside break can trigger rise towards 1.3787(April 30th high).On the downside, immediate support is seen at 1.3717(38.2% fib), a break below could take the pair towards 1.3674 (50% fib).
USD/JPY: The U.S. dollar rose against yen on Friday after a stronger-than-expected U.S. jobs report reduced expectations for interest rate cuts this year. The Labor Department's report showed Nonfarm Payrolls (NFP) rose by 272,000 jobs in May, against expectations of an increase of 185,000.The data also drove a rally in the dollar, making bullion more expensive for overseas buyers.Traders lowered their bets to price in 37 basis points (bps) of cuts by end-December, from 48 bps before the NFP data, with the first cut more likely seen coming in November instead of September. The dollar rose 0.8% against a basket of currencies, having been set for a weekly loss before the jobs data. Strong resistance can be seen at 157.08(23.6%fib), an upside break can trigger rise towards 157.90(Higher BB).On the downside, immediate support is seen at 155.30(38.2% fib), a break below could take the pair towards 154.25 (50%fib).
Equities Recap
European shares edged lower on Friday, a day after the European Central Bank eased borrowing costs as was widely expected, with the focus now shifting to the U.S. jobs data to gauge the Federal Reserve's interest rate path.
UK's benchmark FTSE 100 was last down by 0.48 percent, Germany's Dax was last down by 0.52 percent, France’s CAC was last down by 0.48 percent.
Wall Street stocks ended slightly lower on Friday in choppy trading after stronger-than-expected U.S. jobs data pointed to a robust economy but prompted worries the Federal Reserve may wait longer to cut interest rates than many investors had hoped.
Dow Jones closed down by 0.22% percent, S&P 500 closed down by 0.11% percent, Nasdaq settled down by 0.25% percent.
Treasuries Recap
The benchmark 10-year U.S. Treasury yield , a benchmark for borrowing rates globally, leapt over 15 basis points after the jobs report, to 4.4335%, its biggest one-day jump in about two months.
The two-year yield, which tracks interest rate expectations, climbed nearly 17 basis points to 4.8868%, following six straight days of declines until Thursday. Bond yields rise as prices fall.
Commodities Recap
Gold accelerated declines on Friday after a stronger-than-expected U.S. jobs report doused expectations for U.S. interest rate cuts this year, adding to bearish sentiment driven by data showing top consumer China held off on bullion purchases in May.
Spot gold dipped about 3% to $2,304.54 per ounce as of 1757 GMT. U.S. gold futures settled 2.8% lower to $2,325.
Oil prices edged down on Friday and posted a third straight weekly loss as investors weighed OPEC+ reassurances against the latest U.S. jobs data that lowered expectations that the Federal Reserve will cut interest rates soon.
Brent crude futures settled 25 cents lower at $79.62 a barrel, while U.S. West Texas Intermediate crude (WTI) fell 2 cents to $75.53.
