Non-Farm Payroll numbers came in better than expected confirming Fed will hold rates
Peter Compton | May 3, 2019
The much anticipated jobs data (+263K) for April came in better than expected (+190) with some noise caused by hiring for the census. Wage data (+3.3%) was more or less in line with forecasts. The dollar first gained then lost ground as traders weighed the jobs data in light of the dollar's strengthening trend since end of January.
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May 3, 2019
EUR/USD 1.1160 GBP/USD 1.3029 USD/CAD 1.3440 AUD/USD 0.7008 USD/JPY 111.39 USD/CNH 6.7428 USD/ILS 3.5880 USD/MXN 19.0150 USD/CHF 1.0196 USD/INR 69.2225
The dollar is weaker as traders closed bullish positions set earlier in the week. Attention will now turn to trade talks with China which will continue next week in Washington D.C. The US Chamber of Commerce has said that China trade talks are now close to completion, with progress continuing to be made. However it seems unlikely that China will agree to cut back on industrial subsidies.GBP
The pound strengthened on general dollar weakness. UK Services and Composite PMI data came in slightly better than expected. The Bank of England kept monetary policy on hold yesterday as expected. However, Governor Mark Carney did indicate that one rate hike may be needed to keep inflation in check, and that should we see a smooth Brexit transition. “It will require interest rate increases over that period and it will require more and more frequent interest rate increases than the market currently expects.”EUR
The euro weakened overnight after PPI data for Eurozone came in weaker than expected. CPI data came in very slightly better than expected. In Europe, German Bundesbank President Weidmann has stated that the growth slump was still seen as temporary, and that a pick up is expected.CAD
The Canadian dollar is stable today after weakening yesterday due to a $2 per barrel drop in the price of oil.ASIA/PACIFIC
Data on building approvals disappointed causing the Australian dollar to hit its weakest point since January 2016.
The Chinese renminbi weakened slightly in the offshore market after April manufacturing data fell. The trade talks between the US and China were described as “productive" by Treasury Secretary Mnuchin – which may mean they got very little done. More talks are scheduled next week in Washington D.C.
Japan’s markets remained closed for Golden Week.
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