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After Friday’s NFP data, attention is shifting turns to US inflation and global growth concerns. Markets continue to move fast.
Economic Data
Nonfarm Payrolls increased by 236,000 in March, according to statistics released on Friday by the US Bureau of Labor Statistics (BLS). This result follows February’s print of 326,000 and came in slightly below the market consensus of 240,000. (revised from 311,000).
Key Developments
On Friday, Russia said that it reduced daily oil production in March by 700,000 barrels. That was a greater decrease than the 500,000 barrels per day that the nation had previously committed to. The decreased output coincides with OPEC+’s promise to lower production by 1.1 million barrels per day beginning in May.
The Pound was among the top performers of the week. GBP/USD rose for the fourth week in a row, posting the highest close since June 22; however, it failed to hold above 1.2500.
Despite rising on Friday after the NFP, the US Dollar Index posted the fourth weekly decline in a row, around 102.00. It hit fresh monthly lows but then recovered some ground as US yields stabilize. EUR/USD continued to move higher and posted the highest weekly close in a year, supported by hawkish expectations from the European Central Bank. The Euro is looking at the 1.1000 mark.
The Japanese Yen also outperformed as the bond market points to a recession. USD/JPY closed around 132.00, holding in a familiar range. A new era begins at the Bank of Japan as Kazuo Ueda replaces Hurohiko as governor.
The Canadian dollar was the best in the commodity currencies space, supported by the rally in crude oil prices and by stronger-than-expected data from Canada. USD/CAD bottomed near 1.3400 and then rebounded to 1.3500, trimming gains. On Wednesday, the Bank of Canada will announce its monetary policy decision. It is expected to hold the key interest rate at 4.50%.
AUD/USD posted another weekly close around 0.6650 as it continues to face difficulties above 0.6700. The Reserve Bank of Australia (RBA) left the interest rate unchanged at 3.60% and Governor Lowe said it does not imply it’s the end of the tightening cycle. Next week, Australia will release the March employment report. An increase in 41,600 jobs is expected and the Unemployment rate to stay at 3.5%.
Despite the hawkish surprise from the Reserve Bank of New Zealand (RBNZ) by raising rates by 50 basis points, NZD/USD ended the week marginally lower, at 0.6240, after a reversal from 0.6380.
Also Read:
Russia reduced oil output by bpd 700,000 in March
What Does Wall Street Expect From Next Week’s Earnings, CPI Data?
Can China’s Growing Geopolitical Power Influence Energy Traders?
After NFP, the US Dollar Index continues to recover
EUR/USD drops to four-day lows after NFP on strong US dollar
