U.S. Payrolls Surge, Japan GDP Falls, Euro Slides

Daily Currency Update

Showing US Payrolls

U.S. Payrolls Surge, Japan GDP Falls, Euro Slides, Dollar Strong

Last Friday’s Highlights: The U.S. Nonfarm Payrolls for May surged to 272K, significantly exceeding the forecast of 182K and the previous figure of 165K. The robust job growth implies a strong labour market, which may affect Federal Reserve policy in the future.

Today’s Data: Japan: Q1 GDP came out at 00:50, with a contraction of -0.5% QoQ, matching the forecast but coming sharply from the previous growth of 0.1%. This indicates economic headwinds for Japan for the first quarter.

Tomorrow’s Main Focus: UK Unemployment Rate: At 07:00, the UK Unemployment Rate for April data will be out, with the forecast and previous figures expected at 4.3%.

Euro: On Monday, the euro took a sharp hit due to political uncertainty after French President Emmanuel Macron called for a snap legislative election. This unexpected announcement has sparked concerns about the stability of the political scene in France, sending the euro lower.

Dollar: Meanwhile, the U.S. dollar is staying strong, thanks to a surprisingly good jobs report on Friday. The Solid employment figures have dampened hopes of rate cuts, giving rise to the feeling that the U.S. central bank could postpone further policy easing.