Ipek Ozkardeskaya
Swissquote Bank Ltd
As widely expected, the European Central Bank (ECB) announced a 25bp rate cut when it met yesterday, but raised its inflation target for this and the next year, warned that the road for easing inflation could be bumpy, and ruled out a July rate cut. Still, two G7 central banks announced a 25bp rate cut this week, and marked the beginning of the easing cycle for major central banks and proved to be supportive of reflation flows: oil and metals rebounded. The S&P500 hit a fresh record.
Today, all eyes turn toward the US jobs data. The week was marked by softer-than-expected job openings in April, a significantly lower-than-expected May ADP report, a surprise decline in the pace of unit labour costs from 4.7% to 4% and an unexpected jump in US weekly jobless claims. The consensus of analyst estimates on Bloomberg bet that the US economy may have added around 180K new nonfarm jobs last month, the unemployment rate is seen steady near 3.9% and wages growth may have slightly accelerated on a monthly basis. A soft jobs report should support the dovish Fed expectations and further weigh on the US dollar.
Elsewhere, Nvidia eased after hitting a fresh ATH yesterday, and Microsoft consolidated gains above $420 a share on news that the US opened antitrust investigations into two of the world’s most valuable companies due to their dominance in the rapidly emerging field of AI. GameStop jumped 47% on Roaring Kitty which is the only reason the stock rises these days.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
US Nonfarm Payrolls surpasses consensus in September – LIVE
The US economy added 254K jobs in September, largely exceeding the 140K initially estimated. In addition, the Unemployment Rate ticked lower to 4.1% in the same month (from 4.2%).
EUR/USD breaks below 1.1000 on stellar NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created far more jobs than initially estimated in September, dragging EUR/USD to the area of new lows near 1.0980.
GBP/USD breaches 1.3100 after encouraging US Payrolls
The continuation of the uptrend in the US Dollar motivates GBP/USD to accelerates its losses and breaches 1.3100 the figure in the wake of the release of US NFP.
Gold tests fresh lows near $2,640 after strong NFP
Gold prices intensifies their bearish stance for the day, deflating to the vicinity of the $2,640 region following the publication of the US labour market report for the month of September.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.