U.S. unemployment steady at 6 year lowJune 06, 2014 Posted by: Pete Karabatos
Despite the ECB having enacted unprecedented easing measures yesterday, the Euro has held up very well in trading. Normally currencies sell off in the wake of significant monetary stimulus, which negative deposit rates would surely constitute. However, this last round of easing by the ECB is causing traders to speculate that Euro region’s bond and stock markets will rally, thereby increasing the currency’s demand from foreign investors who wish to invest in those markets. Policymakers in Europe are likely looking for a weaker Euro to help neutralize the risk of deflation within the region. A persistently strong currency will likely lead the ECB towards additional measures.
• U.S. non-farm payrolls rose by 217,000 in May and unemployment held steady at 6.3%, a nearly 6 year low. Total U.S. payrolls are now past their pre-recession peak.
• Canada’s unemployment rate unexpectedly rose to 7.0% in May from 6.9% the previous month. Full-time employment fell by 29,100 jobs while part-time employment increased by 54,900, consistent with recent months where job gains have been part-time.
• The MXN dropped and stocks and bonds rallied after the Mexico’s central bank unexpectedly reduced its benchmark lending rate by .50% to a record low 3.00%
• The latest BOE quarterly Inflation Attitudes Survey showed 42% of respondents expect the benchmark rate to rise within the next year. This is the highest reading for rate increase expectations in 3 years.
• China’s Banking Regulatory Commission issued a statement today in which it vowed to expand lending and cap borrowing costs. Loans to small business, infrastructure projects, and first time home buyers will be priorities.
06/09 EUR: Sentix Investor Confidence (June)
06/09 CAD: Housing Starts (May)
06/10 GBP: Industrial Production (Apr)
06/10 USD: Wholesale Trade and Inventories (Apr)
06/11 GBP: Claimant Count Rate (May)
06/11 USD: Monthly Budget Statement (May)
06/12 USD: Retail Sales (May)
06/12 CAD: Capacity Utilization (Q1)
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