Investors Assess US Labor Market Report

On Friday, the US currency closed the trading session with a decline against a basket of currency majors. The US dollar index (#DX) closed in the negative zone (-0.14%). The United States published ambiguous statistics on the labor market for April. Currency majors have shown a multidirectional response to this report. The main indicators of the US labor market have deteriorated significantly. At the same time, published data exceeded market expectations. The number of people employed in the nonfarm sector of the country decreased by 20.5 million compared to the forecasted value of 22.0 million. The unemployment rate increased significantly and counted to 14.7%. Experts expected the figure at 16.0%.

The greenback is under pressure due to tension in relations between the US and China. So, on Friday, Donald Trump announced that he was not sure whether to complete the “phase one” trade deal with China. Executive Office of the President is considering punitive measures against Beijing because China could not prevent and control the outbreak of coronavirus. Trump said the trade deal would be terminated if China did not meet its purchase commitments.

The European Commission may initiate a sanction procedure against Germany, as it considers that the German Federal Constitutional Court violated the priority of EU law. It should be recalled that the German Court blamed the ECB for the issue that buying government bonds seemed to be an excess of the powers of the regulator and a violation of German law. The European Court of Justice in Luxembourg supports the European Commission in this matter. The President of the European Commission, Ursula von der Leyen, noted that the accusation of the German Constitutional Court raised two EU issues: the euro system and the European legal system.

The "black gold" prices have fallen again. At the moment, futures for the WTI crude oil are testing the $23.90 mark per barrel.

Market indicators

On Friday, there was the bullish sentiment in the US stock market: #SPY (+1.65%), #DIA (+1.97%), #QQQ (+1.37%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.69-0.70%.

The news feed on 2020.05.11:
  • Today, the publication of economic reports is not expected.

by JustForex, 2020.05.11

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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