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
Following
4/30/2021 9:55:43 PM GMT
Gold turns south as US T-bond yields gain traction.
Upbeat US data helps USD gather strength in the second half of the week.
Initial support for gold aligns at $1,760 ahead of $1,740.
The XAU/USD pair failed to break above $1,800 in the previous week and opened in a calm manner on Monday as investors stayed on the sidelines ahead of key macroeconomic events of the week. After fluctuating in a relatively tight range around $1,780, the pair lost its traction on Thursday and dropped to its lowest level in two weeks at $1,756. With the US preserving its strength ahead of the weekend, XAU/USD struggled to stage a convincing rebound and closed the week in the negative territory below $1,770.
5/2/2021 11:57:04 AM GMT
EUR/USD Current Price: 1.2020
The dollar strengthened amid a dismal market’s mood exacerbated by profit-taking.
The Union’s economy contracted as expected in the first quarter of the year.
EUR/USD is at risk of extending its decline mainly on a break below 1.1980.
The EUR/USD pair plunged on Friday to close the week in the red at 1.2020, amid broad demand for the greenback in the last trading session of the day. Month-end profit-taking exacerbated the dollar’s rally, although falling equities and weaker US government bond yields helped the safe-haven currency.
Germany and the EU reported the preliminary estimates of Q1 Gross Domestic Product, both indicating economic contraction. German’s GDP printed at -1.7% QoQ while in the EU, it resulted in-1.8%, a consequence of the pandemic-related lockdowns and restrictions. In the US, the Core Personal Consumption Expenditures Price Index rose to 1.8% YoY in March from 1.4% in February as expected. The
Apr 30, 2021 17:06 GMTFXStreet News
EUR/USD pair came under strong bearish pressure during American session.
US Dollar Index posts strong gains above 91.00.
EUR/USD remains on track to snap three-week winning streak.
The EUR/USD pair fell sharply in the last hour and touched a fresh weekly low of 1.2036. At the moment, the pair is losing 0.64% on the day at 1.2040 and remains on track to close the week in the negative territory. In the absence of a significant fundamental driver, the recent decline seems to be a product of month-end flows into London fix.
Earlier in the day, the data published by Eurostat showed that the eurozone economy contracted at an annual rate of 1.8% in the first quarter. On a positive note, the Unemployment Rate in the euro area edged lower to 8.1% in March and came in better than the market expectation of 8.3%. Nevertheless, these figures failed to trigger a noticeable market reaction.
Apr 30, 2021 18:36 GMTFXStreet News
AUD/USD extended its slide in the second half of the day.
US Dollar Index looks to end the week above 91.00.
Wall Street’s main indexes trade in the negative territory.
After spending the first half of the day in a relatively tight range around 0.7770, the AUD/USD pair under renewed bearish pressure during the American trading hours and dropped to a fresh weekly low of 0.7704. At the moment, the pair is losing 0.62% at 0.7716 and remains on track to finish the week in the red.
DXY jumps above 91.00
The USD’s market valuation continues to drive AUD/USD’s movements ahead of the weekend. Boosted by upbeat macroeconomic data releases and month-end flows, the US Dollar Index climbed to its highest level since April 23 at 91.28 and was last seen rising 0.63% at 91.21.