Will Non-Farm Friday lift the Greenback?
- GBP Services PMI: 52.3
- USD Unemployment Claims
- USD FOMC Member Bullard Speaks
- AUD RBA Monetary Policy Statement
Yesterday’s pattern continued as markets behaved tentatively ahead of the highly anticipated Non-Farm pay rolls which will be released at 13:30 BST today. We’ve seen USD/JPY and other majors move away from the lows and highs marked out earlier on in the week and the Dollar yesterday continued to slowly weaken ahead of the major labour data release.
The economic docket was dominated by the UK tertiary sector as the third and final PMI was released. UK Services PMI followed the tone of the Manufacturing and Construction figures earlier in the week and posted a worse than expected 52.3, its lowest level in three years. The slowdown can be accredited to the growing uncertainty of the upcoming EU Referendum, which has caused a slowdown in growth across the UK.
- CAD Employment Change
- CAD Unemployment Rate
- USD Average Hourly Earnings m/m
- USD Non-Farm Employment Change
- USD Unemployment Rate
Today, the focus will be on the all-important US labour data. This afternoon, the Average Earnings figure will be released which is forecast at 0.3%, Non-Farm payrolls expected to post 203k and the headline unemployment figure scheduled to remain sticky at 5.0%. Non-Farm payrolls will be closely watched now that the Fed is back in data-dependant mode. This week’s ADP failed to meet economists’ consensus and if today’s NFP does the same we should see a considerable sell off of the already weaker Greenback.