Market news

6 May 2016

American focus: The US dollar strengthened against the Canadian dollar

The dollar fell sharply against the euro after the release of US labor market data, but soon played all positions. Experts note that the dollar is supported by positive market sentiment and the recent statements by the Fed. With regard to today's statistics, US Department of Labor reported that the number of employed rose in April to 160 thousand. It was the weakest growth since September 2015. Economists had expected employment to increase by 202 thousand figures for February and March were revised down -.. In total 19 thousand Given the latest data, the average employment gains this year amounted to 192 thousand per month.. The unemployment rate remained at around 5.0%, confirming the forecasts. In addition, it was reported that the average hourly wages of private sector employees increased by 8 cents in April to $ 25.53. In annual terms, wages increased by 2.5%, accelerating compared with March. The average workweek for private sector workers increased by 0.1 hour to 34.5 hours, in line with expectations. The proportion of Americans involved in labor, dropped to 62.8% in April compared with 63.0% in March. The proportion of Americans with jobs was 59.7%, slightly down from March. A broad measure of unemployment, which includes Americans who are working part time or not searching for a job, fell in April to 9.7% from 9.8% in March.

The Canadian dollar fell considerably against the US dollar, breaking the mark of CAD1.2900, which was caused by the publication of the labor market in Canada and the United States report. Statistics Canada reported that the number of employed decreased by 2.1 thousand. People on the results of April as well as the reduction of jobs in energy sectors offsetting increase in employment in other sectors of the economy. Analysts had forecast that employment will increase by 1 thousand. Man, after rising by 40.6 thousand. People in March. The unemployment rate remained at around 7.1 percent, although experts expected an increase to 7.2 percent. The number of jobs in the manufacturing sector fell by 16.5 thousand., While a decrease of 7.8 thousand was recorded in the area of ​​natural resources. On the other hand, employment in the retail and wholesale trade sector increased by 26.8 thousand. People . accommodation and catering sector reported an increase in the number of jobs by 21.9 thousand. Nationwide, the total employment decreased by 2.4 thousand. man in April and employment on a part-time increased by 400 people.

The British pound fell moderately against the dollar, updating yesterday's low. The main pressure on the pound had US employment data, which led investors to revise forecasts for tightening the monetary policy of the Fed. After the publication of the report the chances of further tightening of the Fed's monetary policy meeting in June decreased to 8% from 11% before the release of the data. However, experts point out that, given the faster growth of wages today's report does not rule out a rate hike in the US in June, but in order to inspire confidence in the leaders of the Central Bank will require additional improvement in consumption, consumer price inflation and employment.

A slight influence also provided data for the UK. Society of Motor Manufacturers and Traders (SMMT) reported that the volume of new car registrations in Britain rose by the end of April, recording the highest value for the month since 2003. According to reports, new car registrations increased in April by 2 percent year on year to 189.505 units. The last reading was the highest since April 2003 (when the number of registrations was at the level of 194 312 units). The volume of registrations of new cars and fleet business sector increased by 6.1 percent and 2.8 percent respectively, while the number of registrations individuals decreased by 2.5 percent. In annual terms, the number of new car registrations increased by the end of April by 4.4 percent, reaching 920,366 units.

Market Focus
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  • Earnings Season in U.S.: Major Reports of the Week

All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

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