NFP Shakes Up The Markets | Market Wrap 11-06-13 | Vantage FX UK
- 11 years ago
Vantage FX UK (www.vantagefx.co.uk) take a look back at last week's key news and data.
NFP Shakes Up The Markets
The week started out unpromisingly for the US dollar as data out on Monday revealed that manufacturing declined more than predicted last month. As a result we saw the dollar weaken against most of the major currencies, falling below the 100 yen level on Monday afternoon.
Not to be deterred, the dollar pared back its losses on Friday with the release of the much-anticipated Non Farm Payrolls. The figures showed that the US added 175,000 new jobs in May, significantly higher than the previous month's figure of 149,000, and beating analysts' estimates.
It was less of a whirlwind week for the euro. On Wednesday PMI data indicated that Eurozone services contracted more than predicted, while Eurozone GDP dropped by 0.2 % in the first quarter. Unemployment is still a major concern as data released at the end of last month showed that the Eurozone unemployment rate increased to a record 12.2 % in April.
However Draghi sticks by his prediction of economic growth in the Eurozone towards the year end. The ECB chose to keep interest rates on hold at 0.5% after last month's rate cut.
The Bank of England also, unsurprisingly, opted to keep rates and stimulus unchanged on Thursday. The pound strengthened against most of its peers on the back of the decision not to expand QE. A Halifax report which showed that house prices in the UK rose for a fourth consecutive month further supported sterling.
Now here's what this week has in store. On Wednesday we have German CPI, UK jobless claims for May and the New Zealand rate decision. Then on Thursday we have the Australian unemployment rate, the ECB's monthly report, US initial jobless claims, and to round off the day the Bank of Japan will publish the minutes from their latest policy meeting. On Friday Eurozone CPI and the University of Michigan confidence report will be published.
If you haven't already checked out our chart analysis this week, we're looking at Ichimoku Clouds.
Thank you for watching and see you next week!
NFP Shakes Up The Markets
The week started out unpromisingly for the US dollar as data out on Monday revealed that manufacturing declined more than predicted last month. As a result we saw the dollar weaken against most of the major currencies, falling below the 100 yen level on Monday afternoon.
Not to be deterred, the dollar pared back its losses on Friday with the release of the much-anticipated Non Farm Payrolls. The figures showed that the US added 175,000 new jobs in May, significantly higher than the previous month's figure of 149,000, and beating analysts' estimates.
It was less of a whirlwind week for the euro. On Wednesday PMI data indicated that Eurozone services contracted more than predicted, while Eurozone GDP dropped by 0.2 % in the first quarter. Unemployment is still a major concern as data released at the end of last month showed that the Eurozone unemployment rate increased to a record 12.2 % in April.
However Draghi sticks by his prediction of economic growth in the Eurozone towards the year end. The ECB chose to keep interest rates on hold at 0.5% after last month's rate cut.
The Bank of England also, unsurprisingly, opted to keep rates and stimulus unchanged on Thursday. The pound strengthened against most of its peers on the back of the decision not to expand QE. A Halifax report which showed that house prices in the UK rose for a fourth consecutive month further supported sterling.
Now here's what this week has in store. On Wednesday we have German CPI, UK jobless claims for May and the New Zealand rate decision. Then on Thursday we have the Australian unemployment rate, the ECB's monthly report, US initial jobless claims, and to round off the day the Bank of Japan will publish the minutes from their latest policy meeting. On Friday Eurozone CPI and the University of Michigan confidence report will be published.
If you haven't already checked out our chart analysis this week, we're looking at Ichimoku Clouds.
Thank you for watching and see you next week!