EU Morning Report – US thought to have created 513K jobs for May!
Friday, June 4th, 2010US thought to have created 513K jobs for May!
- Markets saw a strong USD yesterday as stock markets started with a negative tone and risk appetite was low. We had a couple of important announcements with results coming in at or just below expectations. Non Manufacturing ISM came in at 55.4 indicating the services sector’s continued expansion, the ADP employment report came in at 55K jobs compared to the consensus of 70K and a slightly worse than expected jobless claims number at 453K. Today the markets are focused purely on Non Farm Payrolls and the general consensus is for the report to show the creation of over 500K jobs in the US for the month of May. USDJPY price action yesterday was 90.52 – 92.85.
- In Europe yesterday we had a series of PMI reports out of several member states, the EuroZone overall PMI services figure came in at 56.2 just above expectations which temporarily boosted the currency however as the session went on we saw a sharp decline in EZ wide retail sales. We also had some statements come from ECB Executive Council Member Shaghi saying that ”Europe is too focused on the exchange rate” hoping that it would help boost imports. EURUSD price action yesterday was between 1.2326 – 1.2152.
- In the UK we had nationwide house prices come in at 0.5% for the month and services PMI came in weaker at 55.4, many market analysts believe the GBPUSD has formed a base for now and the risk is to the upside. GBPUSD price action was between 1.4583 – 1.4742
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.2230 with a preference to enter into Short positions at 1.2220
- § The USDJPY pivot point is at 92.20 with a preference to enter Long positions at 92.25
Today’s calendar and market movers:
- § US Fed Chairman speech
- § Euro Zone GDP Q1 expected at 0.2%
- § Canada Employment Change for May expected at 12.5K
- § US Non Farm Payrolls for May expected at 513K jobs
Equity Markets:
- US equities closed positive yesterday with the S&P500 up by 0.41% and the DJIA up by 0.06%. The European bourses were positive yesterday with the FTSE up 1.16% the DAX and the CAC closing at 1.23% and 1.59%. The NIKKEI and the HSI at the time of writing is -0.13% and -0.26% respectively.
Written by Easy-Forex
