Posted at 03 June 2023 / Categories Market Roundups
•Brent and WTI on track for first weekly decline in three weeks
•U.S. employers boost hiring in May; unemployment rate up to 3.7%
•U.S. drillers cut oil rigs by most since Sept 2021 -Baker Hughes
•US May U6 Unemployment Rate 6.7%, 6.6% forecast,6.6% previous
•US May Participation Rate 62.6%, 62.5% forecast, 62.6% previous
•US May Average Hourly Earnings (MoM) 0.3%,0.4% forecast, 0.5% previous
•US May Average Hourly Earnings (YoY) (YoY) 4.3%,4.3% forecast, 4.4% previous
•US May Nonfarm Payrolls 339K, 180K forecast, 253K previous
•US May Government Payrolls 56.0K ,23.0K previous
•US May Private Nonfarm Payrolls 339K, 160K forecast, 230K previous
•US May Average Weekly Hours 34.3, 34.4 forecast,34.4 previous
•US May Manufacturing Payrolls -2K,8K forecast,11K previous
• US May Unemployment Rate3.7%, 3.5% forecast,3.4% previous
• U.S. Baker Hughes Oil Rig Count 555,570 previous
• U.S. Baker Hughes Total Rig Count 696, 711 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead events And Other Released (GMT)
•No Events Ahead
EUR/USD: The euro declined against on Friday after May's non-farm payrolls report showed employment numbers surged, while traders weighed the merits of the U.S. Federal Reserve possibly skipping a rate hike in June.The report showed that payrolls in the public and private sector increased by 339,000 in May, far outstripping the 190,000 forecast on average by economists polled by Reuters. May's jump followed a 253,000 rise in April.Despite strong hiring, the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April. The dollar index rose 0.483%, with the euro dropping 0.5% to $1.0707. Immediate resistance can be seen at 1.0719(5DMA), an upside break can trigger rise towards 1.0749 (38.2%fib).On the downside, immediate support is seen at 1.0667 (23.6%fib), a break below could take the pair towards 1.0623(Lower BB).
GBP/USD: Sterling declined against the dollar in six months on Friday following a strong-than-expected jobs growth data that raised investor expectations that the Federal Reserve could retain its rate interest hikes. Labor Department data showed on Friday that the U.S. economy added 339,000 jobs last month, significantly higher than most estimates and suggesting tighter labor market conditions which might prompt a Fed rate hike.The market mood was also supported by the U.S. Senate passing bipartisan legislation on Thursday that lifted the federal government's $31.4 trillion debt ceiling and averted what would have been a first-ever default. Immediate resistance can be seen at 1.2516 (23.6%fib), an upside break can trigger rise towards 1.2553 (Daily high).On the downside, immediate support is seen at 1.2468(21DMA), a break below could take the pair towards 1.2435(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Friday as investors grew more optimistic on the outlook for riskier financial assets and weighed prospects of the Bank of Canada resuming interest rate hikes. The central bank is due to make an interest rate decision next Wednesday. Money markets see a roughly 40% chance it will raise its benchmark rate for the first time since January. The price of oil, one of Canada’s major exports, clawed back some of its weekly decline ahead of a meeting of OPEC and its allies this weekend. U.S. crude futures settled 2.3% higher at $71.74 a barrel. The loonie was trading 0.2% higher at C$1.3425 to the greenback .Immediate resistance can be seen at 1.3451(Daily high), an upside break can trigger rise towards 1.3485 (38.2% fib).On the downside, immediate support is seen at 1.3404(23.6% fib), a break below could take the pair towards 1.3348 (Lower BB).
USD/JPY: The U.S. dollar rose against Japanese yen on Friday as hotter-than-expected U.S. jobs data lifted greenback across the board. U.S. nonfarm payrolls grew by 339,000 in May, beating expectations for an increase of 190,000, but the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April. U.S. employment increased more than expected in May, but a moderation in wages could allow the U.S. Federal Reserve to skip a rate hike this month for the first time in more than a year, which could support oil demand. Strong resistance can be seen at 139.81(23.6%fib) an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen 139.44(11DMA), a break below could take the pair towards 138.81(38.2%fib)
European shares clocked their best one-day gain on Friday as investors took comfort from easing euro zone inflation, the passing of the U.S. debt bill, and growing evidence supporting the case for the Federal Reserve to pause interest rate hikes this month.
UK's benchmark FTSE 100 closed up by 1.56 percent, Germany's Dax ended up by 1.25 percent, France’s CAC finished the day up by 1.87 percent.
U.S. stocks closed higher on Friday after a labor market report showing moderating wage growth in May indicated the Federal Reserve may skip a rate hike in two weeks, while investors welcomed a Washington deal that avoided a catastrophic debt default.
Dow Jones ended up by 1.51 percent, S&P 500 ended up by 1.45 percent, Nasdaq ended up by 1.07 percent.
Yields on U.S. Treasuries rose Friday after Labor Department data showed employment increased more than expected in May, which could pressure the Federal Reserve to hike interest rates later this month.
The yield on benchmark 10-year Treasury notes was up 8.3 basis points to 3.691%.
Gold slipped on Friday as hotter-than-expected U.S. jobs data lifted Treasury yields, but was on track for a weekly gain as a higher unemployment reading kept alive hopes that the Federal Reserve would pause interest rate hikes.
Spot gold was down 1.4% at $1,951.13 per ounce by 14:17 EDT (1817 GMT), after hitting a seven-session high earlier. U.S. gold futures settled 1.3% higher at $1,969.6.
Oil prices rose over 2% on Friday after the U.S. Congress passed a debt ceiling deal that averted a government default in the world's biggest oil consumer and jobs data fueled hopes for a possible pause in Federal Reserve interest rate hikes.
Brent futures rose $1.85, or 2.5%, to settle at $76.13 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.64, or 2.3%, to settle at $71.74.