Home > Resource Hub > Daily Market News > It’s US Jobs Day and local election results out

It’s US Jobs Day and local election results out

It’s US Jobs Day and local election results out

The negative data trend for the UK continued yesterday as April’s services PMI came in at 52.3, down from the 53.7 figure seen for March. This is the weakest services figure for three years, completing the set as all three PMI figures came in weaker for April. Although not directly related to a ‘Brexit’, these figures show that the upcoming EU referendum has taken a significant toll on the UK economy. Following the data release, Sterling weakened against both the Euro and the Dollar, but managed to recover losses later in the day.

Voters went out in force as elections for the Mayor of London were held yesterday. Results are due for slow release from 11.30am onwards, with a final announcement due for 5pm. As there is no major economic data due for release today, this will likely take centre stage in the UK. Sterling will be looking to recover back to the 1.4500 levels against the Dollar today, but will be heavily reliant on poor data from across the pond.

The Euro showed signs of further weakness in yesterday’s trading session as the GBPEUR rose by 0.69%. The pair ended the day on 1.2707. As there have been no Eurozone developments, the single currency relinquished gains made during this week allowing the Dollar and Sterling to retrace from Tuesday’s lows.

US jobless claims disappointed yesterday. The data showed that the number of people filing for unemployment benefits rose more than expected last week, 274k vs the previous result of 260k, the biggest gain in more than a year. Although the overall impact was minimal on the Dollar, the lacklustre data will cause concerns over the U.S jobs report due out later today. The Fed had stated that the June interest rate decision was largely data dependant, so Dollar bulls will focus on the headline employment increase and the earnings component of today’s report – strong figures are likely to push the Greenback higher.

Cable opened Thursday at 1.4495, and the pair struggled for direction all day with any move above the 1.4500 level met with Dollar buying. The pair hovered around that level for much of the day, as investors look to position themselves ahead of the US jobs report. EURUSD opened yesterday at 1.1486, before the Dollar clawed back some of the recent losses in the European session. The pair opened this morning at 1.1405, 0.73% lower than yesterday’s open.

Data to watch: 1.30pm US April NonFarm Payrolls, Unemployment Rate, Labour Force Participation Rate, Average Weekly Hours & Average Hourly Earning (YoY and MoM). 8pm US March Consumer Credit Change.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.