Dollar Weakness Continues as Focus Shifts to Non-Farm Payroll Data
| Action Insight Daily Report 5-3-24 |
Dollar Weakness Continues as Focus Shifts to Non-Farm Payroll Data |
Dollar weakens broadly in Asian session, continuing its selloff from the previous night, as influenced by rebound in US stocks and falling treasury yields. The focus is now squarely on today's non-farm payroll report, a key indicator closely monitored by Fed policymakers. Preliminary data suggest possibility for an upside surprise in the jobs figures For the Federal Reserve to consider rate cuts, there needs to be a clear trend of loosening in the job market that could contribute to cooling domestic inflation. Strong employment data today would suggest that high interest rates would need to persist longer than some investors anticipate, maintaining a restrictive policy environment to temper inflation pressures... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0689; (P) 1.0710; (R1) 1.0745; More... Range trading continues in EUR/USD and intraday bias stays neutral. On the upside, break of 1.0752 will resume the rebound from 1.0601. Sustained trading above 55 D EMA (now at 1.0769) will argue that fall from 1.0980 has completed. On the downside, though, break of 1.0648 will retain near term bearishness and bring retest of 1.0601 low first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 06:45 | EUR | France Industrial Output M/M Mar | 0.30% | 0.20% | | 08:00 | EUR | Italy Unemployment Mar | 7.50% | 7.50% | | 08:30 | GBP | Services PMI Apr F | 54.9 | 54.9 | | 09:00 | EUR | Eurozone Unemployment Rate Mar | 6.50% | 6.50% | | 12:30 | USD | Nonfarm Payrolls Apr | 243K | 303K | | 12:30 | USD | Unemployment Rate Apr | 3.80% | 3.80% | | 12:30 | USD | Average Hourly Earnings M/M Apr | 0.30% | 0.30% | | 13:45 | USD | Services PMI Apr F | 50.9 | 50.9 | | 14:00 | USD | ISM Services PMI Apr | 52.3 | 51.4 |
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