US Dollar Weekly Outlook - US NFPs Massive Miss, Heavyweight Data Next Week Will Steer the US Dollar
2021-05-08 12:00:00
Justin McQueen,
Analyst
US Dollar Price, News and Analysis:
US Jobs report – massive miss against expectations and last month.
Economic calendar key to the US dollars fortune
The latest US Jobs report rocked the financial market Friday, missing expectations by a huge margin, sending the greenback spinning lower against a range of currencies. The market, expecting one million new jobs to be added to the economy – with some commentators calling for a much higher number – fell sharply as new jobs totaled just 266k in April, while March’s figure was lowered to 770k from a prior 916k.
Daily FX Market Roundup 05.06.2021
By Kathy Lien, Managing Director of FX Strategy for BK Asset Management
Non-farm payrolls are due for release on Friday and the U.S. economy is expected to add nearly a million jobs. If NFPs rise by 978K, the current consensus forecast, it would be the strongest month for job growth since August of last year. The U.S. dollar should be trading higher on these lofty expectations but instead is mostly lower.
There are a number of reasons for this lack of enthusiasm that could affect how the dollar reacts to NFPs on Friday. While there’s no doubt that the U.S. recovery gained momentum over the past month with many businesses adding new workers not all signs point to accelerated job growth. The employment component of manufacturing sector for example slowed for the fifth straight month and there was no significant decline in jobless claims. While this won’t take much away from Friday’s jobs report, it reduces the possibility of a blowout num
The Majors
It was a relatively bearish end to the week for the European majors on Friday. The CAC40 fell by 0.53%, with the DAX30 and the EuroStoxx600 ending the day down by 0.12% and by 0.28% respectively.
Economic data from the Eurozone weighed on the European majors at the end of the week.
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st quarter GDP numbers from Germany and the Eurozone in particular left the majors in the red, with French consumer spending figures also a drag on Friday.
From the U.S, positive economic data failed to support the majors, with the latest round of stats pointing to economic divergence stemming from extended COVID-19 containment measures across the Eurozone.
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