EUR/USD Eyes February High Again as Dovish Fed Rhetoric Persists
of clients are net short. Long
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of clients are net short. Long
News
of clients are net short. Long
News
of clients are net short. Long
News
of clients are net short. Long
News
2021-05-17 19:30:00
David Song,
Strategist
EUR/USD Rate Talking Points
EUR/USD attempts to retrace the decline following the update to the US Consumer Price Index (CPI) as a growing number of Federal Reserve officials warn of a transitory rise in inflation, and the exchange rate may stage another attempt to test the February high (1.2243) as it carves a series of higher highs and lows.
The jobs report was a major piece of economic data-possibly the most important of the month.
Expectations were high-consensus estimates were looking for an additional 1 million jobs created last month as the economy looks to rebound from the viral pandemic. The 266,000 jobs added was far below that expectation, however, as the government-reported unemployment rate also ticked higher to 6.1%.
There are two primary issues at work in gold that could point to higher prices.
The first issue is the data weakness itself. If the jobs market is not strong and recovering, it stands to reason that other parts of the economy may also weaken.
NFP early insight: 1M jobs on tap?
The consensus estimate for Friday’s report is 975k net new jobs, which would mark the strongest reading on the US labor market in the last eight months. Share:
With bank holidays in the UK, Japan, and China today, it’s not surprising that most major markets have gotten off to a slow start to the trading week. That said, trading activity is likely to pick up sharply as the week rolls on, culminating in Friday’s highly-anticipated release of the April Non-Farm Payrolls report.
Last month, the marquee US jobs report came in at 916K, crushing estimates of 652K net new jobs, and we also saw positive revisions to the previous month’s release. Economists have taken note of the impressive figure, as well as the ongoing rollout of COVID vaccines, and the consensus estimate for Friday’s report is 975k net new jobs, which would mark the strongest reading on the US labor market in the last