Forexlive Americas FX news wrap: US jobs continue to support solid employment

Markets:

• Gold down $4.80 or -0.15% at $3234.11
• WTI crude oil down $0.74 or -1.29% at $58.50

In the US stock market, the S&P closed higher for the ninth consecutive day. For the trading day:

• Dow industrial average rose 564 points or 1.39% at 41317.43
• S&P index rose 82.54 points or 1.47% at 5686.65.
• NASDAQ index rose to 66.99 points or 1.51% at 17977.73

For the week:

• Dow industrial average rose 3.00%
• S&P index rose 2.92%
• NASDAQ index rose 3.42%

in the US debt market, yields moved higher after the better-than-expected US jobs report and solid factory orders:

• 2 year yield 3.823%, +12.3 basis points
• 5 year yield 3.914%, +10.2 basis points.
• 10 year yield 4.306%, +7.5 basis points
• 30 year yield 4.787%, +5.1 basis points

The US jobs report was released and it was good/as expected

• Non-farm payrolls: +177K (vs. +130K expected; prior revised to us 185K versus 228K previously reported

• Unemployment rate: 4.2% (in line with expectations; prior 4.2%)

• Unrounded unemployment: 4.1872% (vs. 4.1519% prior)

• Participation rate: 62.6% (vs. 62.5% prior)

• Private payrolls: +167K (vs. +125K expected; prior revised to +170K versus 209K)

• Manufacturing payrolls: -1K (vs. -5K expected; prior +3K)

• Government jobs: +10K (vs. +19K prior)

Wages & Hours

• Average hourly earnings (m/m): +0.2% (vs. +0.3% expected; prior +0.3%)

• Average hourly earnings (y/y): +3.8% (vs. +3.9% expected; unchanged from prior)

• Average weekly hours: 34.3 (vs. 34.2 expected; prior 34.2)

Household Survey

• Total household employment: +436K (vs. +201K prior)

• Full-time jobs: +305K (vs. +87K prior)

• Part-time jobs: +56K (vs. +247K prior)

Revisions

There was good news from China reported from the Wall Street Journal. They announced that China was looking for a way to kickstart trade negotiations by making some sort of agreement on fentanyl. They just didn’t know what to do. Nevertheless they report led to stocks being bought (and yields moving higher).

In the forex market: the dollar was mostly lower. It rose modestly versus the GBP. Below are the changes of the US dollar versus the major currencies for the day:

Looking ahead to next week the cutie will be the Federal Reserve rate decision Wednesday. The FOMC is expected to keep rates unchanged. Other key events include:

Mon May 5

• 2:30am CHF – CPI m/m: 0.2% (prev. 0.0%)

• 10:00am USD – ISM Services PMI: 50.2 (prev. 50.8)

Tue May 6

• 6:45pm NZD – Employment Change q/q: 0.1% (prev. -0.1%)

• 6:45pm NZD – Unemployment Rate: 5.3% (prev. 5.1%)

Wed May 7

• 2:00pm USD – Federal Funds Rate: 4.50% (prev. 4.50%)

• 2:00pm USD – FOMC Statement

• 2:30pm USD – FOMC Press Conference

Thu May 8

• 7:00am GBP – BOE Monetary Policy Report

• 7:00am GBP – Monetary Policy Summary

• 7:00am GBP – MPC Official Bank Rate Vote: 0–9–0 (prev. 0–1–8)

• 7:00am GBP – Official Bank Rate: 4.25% (prev. 4.50%)

• 8:30am USD – Unemployment Claims: 232K (prev. 241K)

Fri May 9

• 4:40am GBP – BOE Gov Bailey Speaks

• 8:30am CAD – Employment Change: +24.5K (prev. -32.6K)

• 8:30am CAD – Unemployment Rate: 6.7% (prev. 6.7%)