MUFG’s Lee Hardman notes the US Dollar (USD) has rebounded, lifting the Dollar Index (DXY) back above 98.000 as stalled Middle East peace talks and a stronger April Nonfarm Payrolls (NFP) report underpin demand.
Dow Jones Industrial Average (DJIA) futures clawed back ground on Friday after Thursday's late-session selloff dragged the cash index toward 49,500. Overnight dealing through Asia and Europe held a tight range just above 49,600, with traders reluctant to commit ahead of the US jobs report.
GBP/USD advances around 1.3630 on Friday at the time of writing, up 0.54% on the day, benefiting from broad US Dollar weakness following the release of the US employment report.
The United States (US) created 115K new jobs in April, much better than the 62K anticipated by markets. The unemployment rate in the same month was confirmed at 4.3%, as expected. The Nonfarm Payrolls (NFP) report came in better than anticipated, yet the US Dollar (USD) eased with the news.
Nonfarm Payrolls (NFP) in the United States (US) rose by 115K in April, the US Bureau of Labor Statistics (BLS) reported on Friday. This print followed the 185K increase (revised from 178K) recorded in March and surpassed the market expectation of 62K by a wide margin.
United States Nonfarm Payrolls came in at 115K, above expectations (62K) in April
The Pound Sterling (GBP) trades higher against its major currency peers, is up 0.43% around 1.3610 against the US Dollar (USD), during the European trading session on Friday.
The New Zealand Dollar (NZD) extends gains against the US Dollar (USD) on Friday, reaching session highs at 0.5970, after bouncing from 0.5930 earlier on the day.
Silver (XAG/USD) extends its bullish momentum on Friday, trading around $80.85 at the time of writing, up 3.15% on the day.
The Australian Dollar (AUD) trades 0.4% higher against the US Dollar (USD) at around 0.7240 during the European trading session on Friday.
Gold (XAU/USD) struggles to capitalize on its intraday move higher and remains below an over two-week high through the first half of the European session on Friday.
MUFG’s Lloyd Chan expects today’s US nonfarm payrolls to pose upside risks for the US Dollar (USD), with labour indicators hinting at a stronger April print.
