US jobs grow, but less than expected, dollar lower, stocks higher

US jobs grow, but less than expected, dollar lower, stocks higher

US Nonfarm Payroll for May of 559K was much better than April’s revised 278K, but less than 675K expected. The unemployment rate fell to 5.8%. Markets consolidated this week, as traders awaited today’s US jobs data for direction. The dollar is broadly lower, stocks higher and US Treasury yields lower. Traders now await a string of major central bank meetings over the next two weeks to learn how each is addressing higher inflation expectations.

“Life is what happens when you’re busy making other plans.”
John Lennon
  • FX Rates
    June 4, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar is lower across the board, falling between 0.25%-0.75% versus the major currencies. May’s US Jobs data showed growth over April, but by less than expected.

    GBP

    Th UK pound is higher on broad dollar weakness and following upbeat UK jobs data. According to consultant KPMG, UK companies are hiring at the fastest pace in 23 years after the government reopened the economy.

    EUR

    The euro is higher by about 0.33% overnight, fueled by this morning’s US jobs data. Eurozone Retails Sales for April released this morning were a disappointment, falling by 3.1% MoM, much worse than expectations of -1.5% and March’s +2.7%. Traders await next week’s GDP and Employment data for the Eurozone.

    CAD

    The Canadian dollar gained versus the US dollar, but underperformed its peer currencies. Released this morning, Canadian jobs data for May came in weaker-than-expected, attributed to government restrictions to contain a third Covid wave over April/May.

    ASIA/PACIFIC

    The Chinese yuan gained slightly overnight, but only after a bout of earlier weakness which had taken USD/CNY over 6.41. China’s central bank has been taking steps to contain the rally in the CNY, which may result in consolidation over the foreseeable future.

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Scott Petruska
WRITTEN BY
Scott Petruska

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