Forex4you - Analytics

    Forex4you

    536.00 7.00/10
    60% of positive reviews
    Real

    Dollar recovers after better-than-expected Jobless Claims

    USD

    The dollar rebounded on Thursday after Jobless Claims came out lower-than-predicted, lifting the outlook for the U.S economy which had suffered after a run of negative data releases, including a below-expectations ADP Employment Change figure on Wednesday.

    Initial Jobless Claims in week-ending May 2, came out at 265k when 279k had been forecast.

    Continuing Claims fell to 2228k from 2256k in the previous week, which was well below analyst’s estimates of 2270k.

    Other data showed Challenger Job Cuts came out at 61.6k yoy in April.

    The upbeat jobs data helped lift the mood ahead of this week’s major release Non-Farm Payrolls on Friday.

    EUR

    A sharp sell-off in euro-zone bonds and concomitant sudden rise in their yields weighed on the single currency on Thursday.

    The yield on German Bunds, which act as a benchmark for the euro-zone, jumped by 21 basis points to 0.80% – an unusually large rise in the space of only a day – in a market more used to fluctuations of a few hundredths of a percentage point.

    Given many analysts and traders had expected yields to go down instead, the sudden volatility caught a lot of investors by surprise.

    Many saw the sudden move as a reaction after the massive buying spree which followed the ECB’s QE programme in March.

    On the data front, the euro was supported by an increase in Retail PMI’s to 49.5; the figure, however, remained below the 50 which differentiates between growth and contraction.

    GBP

    The pound rose marginally on Thursday on the day of the U.K general election.

    The gains may have resulted from an increase in the chances of a Labour coalition government following recent polls showing the Conservatives and Labour both on 33%, which would probably result in neither party gaining an all out majority, something called a hung parliament.

    In such an event the most likely outcome would be a coalition government between Labour and probably the Scottish National Party (SNP). This would remove the threat of the U.K leaving the E.U since Labour has a more pro-EU policy – unlike the Conservatives who will hold a referendum on membership if they are elected.

    The pound may have gained strength on Thursday due to the diminishing possibility of a Brexit, although the votes have still not been counted yet and the Conservatives could still win, or if Labour did not wish to do a deal with the SNP that would create uncertainty as no clear party would have a majority; and that might lead to sterling weakness instead.

    The pound could also give up gains from lessening Brexit fears if Labour’s fiscal plans to possibly spend-and-borrow more for social programmes raised fresh concerns in the city.

    JPY

    The USD/JPY pairing has remained within its May trading range and was trading at 119.77 yen versus the dollar on Thursday late in the New York session.

    Japanese stocks fell after markets reopened from the long holiday with export firms declining as weak U.S data sent the yen higher and investors weighed earnings.

    Overnight data indicated that Japan’s monetary base remained unchanged at 35.2% yoy in April. In the early hours on Thursday data revealed that Japan’s Services PMI expanded to a level of 51.3% in April after registering a level of 48.4% in March.

    Going forward, trading trends in the yen are expected to be determined by the Bank of Japan minutes from its latest monetary policy meeting due for release overnight.

    USD

    The dollar rebounded on Thursday after Jobless Claims came out lower-than-predicted, lifting the outlook for the U.S economy which had suffered after a run of negative data releases, including a below-expectations ADP Employment Change figure on Wednesday.

    Initial Jobless Claims in week-ending May 2, came out at 265k when 279k had been forecast.

    Continuing Claims fell to 2228k from 2256k in the previous week, which was well below analyst’s estimates of 2270k.

    Other data showed Challenger Job Cuts came out at 61.6k yoy in April.

    The upbeat jobs data helped lift the mood ahead of this week’s major release Non-Farm Payrolls on Friday.

    EUR

    A sharp sell-off in euro-zone bonds and concomitant sudden rise in their yields weighed on the single currency on Thursday.

    The yield on German Bunds, which act as a benchmark for the euro-zone, jumped by 21 basis points to 0.80% – an unusually large rise in the space of only a day – in a market more used to fluctuations of a few hundredths of a percentage point.

    Given many analysts and traders had expected yields to go down instead, the sudden volatility caught a lot of investors by surprise.

    Many saw the sudden move as a reaction after the massive buying spree which followed the ECB’s QE programme in March.

    On the data front, the euro was supported by an increase in Retail PMI’s to 49.5; the figure, however, remained below the 50 which differentiates between growth and contraction.

    GBP

    The pound rose marginally on Thursday on the day of the U.K general election.

    The gains may have resulted from an increase in the chances of a Labour coalition government following recent polls showing the Conservatives and Labour both on 33%, which would probably result in neither party gaining an all out majority, something called a hung parliament.

    In such an event the most likely outcome would be a coalition government between Labour and probably the Scottish National Party (SNP). This would remove the threat of the U.K leaving the E.U since Labour has a more pro-EU policy – unlike the Conservatives who will hold a referendum on membership if they are elected.

    The pound may have gained strength on Thursday due to the diminishing possibility of a Brexit, although the votes have still not been counted yet and the Conservatives could still win, or if Labour did not wish to do a deal with the SNP that would create uncertainty as no clear party would have a majority; and that might lead to sterling weakness instead.

    The pound could also give up gains from lessening Brexit fears if Labour’s fiscal plans to possibly spend-and-borrow more for social programmes raised fresh concerns in the city.

    JPY

    The USD/JPY pairing has remained within its May trading range and was trading at 119.77 yen versus the dollar on Thursday late in the New York session.

    Japanese stocks fell after markets reopened from the long holiday with export firms declining as weak U.S data sent the yen higher and investors weighed earnings.

    Overnight data indicated that Japan’s monetary base remained unchanged at 35.2% yoy in April. In the early hours on Thursday data revealed that Japan’s Services PMI expanded to a level of 51.3% in April after registering a level of 48.4% in March.

    Going forward, trading trends in the yen are expected to be determined by the Bank of Japan minutes from its latest monetary policy meeting due for release overnight.


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree