Beat the street: US payrolls steer a lower dollar
Weaker than expected non-farm payrolls on Friday has taken the dollar down with the dollar basket now on for its worst week in two months.
IGTV’s Jeremy Naylor is joined by Nick Cawley from Daily FX to assess the reaction to the weaker than forecast number for job creation at 174,000 for April. This relatively weak reading also giving a fillip to Wall Street which was already basking in sunny outlook for the session ahead because of good numbers for the latest quarterly earnings from Apple and Coinbase. Apple also providing a bit of history in announcing the biggest ever corporate share buyback at $110 billion.
(AI Video Summary)
April's job creation figures
In this edition of "Beat the street," focus was on the anticipation of the US non-farm payroll data, which significantly impacts the markets. April's job creation figures came in at 175,000 - lower than the expected 240,000 and March's revised figure of 315,000. This slowdown signals weaker economic momentum, despite not being disastrously low. The unemployment rate edged up from 3.8% to 3.9%, with average hourly earnings growth slowing to 0.2%. The Federal Reserve, observing these trends, hints at potential rate cuts, given the softer job market and concerns over inflation. Markets reacted with movements in foreign exchange, notably a weaker US dollar, impacting the EUR/USD trade positively.
Earnings reports
Additionally, corporate earnings from companies like Apple and Coinbase were discussed, impacting stock market dynamics. Overall, the session covered important economic indicators, central bank policy implications, and market responses to corporate earnings and forex shifts.
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