Previous Day's Market Highlights
The pound was broadly softer yesterday as Services PMI also disappointed market expectations, a drop that was partially attributed to the effects of bad weather. The dollar’s bid tone did little to help, and sterling-dollar briefly fell below 1.40 to its lowest levels since 19 March. Euro-dollar tested lows around 1.2220. Sterling-euro was a touch softer but again held above 1.14.
The dollar weakened only briefly in the afternoon as data showed a wider-than-forecast trade deficit in February and an uptick in weekly Initial Jobless Claims.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The main event of the day is the US’s highly anticipated monthly jobs report (13:30 BST). While the Nonfarm Payrolls figure has typically been a source of market volatility, investors have been increasingly reacting to the average earnings figures as they look for signs of rising wage pressures.
With a solid number of jobs expected to have been added to the economy, an expected increase in wage growth, and a potential dip in the Unemployment Rate to 4.0%, a new low since December 2000, the dollar could be primed to strengthen, particularly if any of the figures beat expectations. However, there may be a greater risk to the downside if the figures instead miss forecasts, in which case the dollar could weaken.
Canada also releases its jobs data this afternoon, with the Unemployment Rate forecast to remain unchanged at 5.8%. A slight rise in Net Employment could be favourable for the loonie, but the release’s overall market impact may be relatively contained unless there are any surprises.
BoE Governor Carney is speaking at the International Climate Risk Conference for Supervisors, which will likely have little market impact unless monetary policy discussions come into play. Later this evening, after the European close, Fed Chair Powell is to speak on the economic outlook, which could pose some event risk for the dollar.
Today's Economic Calendar
|13:30||USD||Nonfarm Payrolls (Mar)||185K||313K|
|13:30||USD||Average Hourly Earnings YoY (Mar)||2.7%||2.6%|
|13:30||USD||Average Hourly Earnings MoM (Mar)||0.3%||0.1%|
|13:30||USD||Unemployment Rate (Mar)||4.0%||4.1%|
|13:30||CAD||Unemployment Rate (Mar)||5.8%||5.8%|
|13:30||CAD||Net Change in Employment (Mar)||20.0K||15.4K|
|15:00||CAD||Ivey Purchasing Managers Index s.a. (Mar)||60.2||59.6|
|16:15||GBP||BoE Governor Carney Speaks|
|18:30||USD||Fed Chair Powell Speaks|