U.S. dollar exchange rate increased significantly against the euro, which in the first place was due to the publication of a report on employment in the United States. The Labor Department reported that U.S. employers added 195,000 jobs in June, a sign of major improvement in the labor market, said on Friday. The unemployment rate remained unchanged at 7.6%. We add that the results exceeded expectations. Economists had expected the growth to 162,000, and the fall in the unemployment rate to 7.5% from 7.6% in May.
U.S. employers added an average of 182,000 jobs each month for the past year, said the Ministry of Labour. Growth in employment in May rose by 195,000 originally reported 175,000 and 199,000 in April, compared with an earlier estimate of 149000.Federalnaya Reserve oversees employment data. Improvements could signal the imminent release of the 85-billion program of bond purchases. Fed Chairman Ben Bernanke said that the program could end up around speed, unemployment is 7%. The Fed said it may start to raise interest rates after the figure drops to 6.5%.
The last picture of the labor market shows that the economy may be ready for more rapid growth. Consumer spending and strengthen the housing market have been most of the recovery, but economists predict modest growth in the second quarter because of government cuts, slow growth abroad, and the total uncertainty. The private sector added 202,000 jobs in June, led by growth in the hospitality sector, the retail sector, healthcare, and financial activities. Monthly job growth among these companies was double the average growth rate in 2012, said the Ministry of Labour. Employment in the manufacturing sector slowed. Despite the overall progress, 11800000 workers who wanted a job could not find a job for over a month. A broader measure of unemployment, which includes those who are looking for part-time work increased to 14.3% from 13.8% the previous month.
Pound continued to decline against the U.S. dollar after the eve of the first meeting of Mark Carney as chairman of the Monetary Policy Committee of the Bank of England completed an unusual warning that the high expectations among investors tightening does not guarantee economic development. The meeting ended without any change in the policy of the central bank amid signs that the recovery in the UK economy is gaining momentum. In the retreat of its usual practice, when the policy has remained unchanged, the Bank of England issued a statement in which he said that the recovery is under way, and that he expects the annual inflation rate 2.0% in the future. Monetary Committee also said that it can raise its key interest rate sooner than investors expected. "The implied rate of the Bank of England is not justified in view of recent developments in the domestic economy," - said the Monetary Committee. Minutes of the meeting will be released on July 17. Also noticeable pressure on the pound had a report on employment in the United States, which exceeded estimates.
The Canadian dollar was lower against the U.S. dollar after strong employment data in the U.S. and Canada, which have led to widespread growth of the U.S. dollar in light of the growing expectations that the Federal Reserve will begin to narrow its program of bond purchases in the coming months.
Statistics Canada reported that the number of new jobs has decreased by 400, showing the first decline in three months, and little change after the high growth in May to 95 thousand Economists had expected employment decreased by 12.3 thousand
The unemployment rate in June remained unchanged at 7.1% in line with forecasts. The number of jobs to full-time employment in June fell 32.4 thousand, and part-time jobs increased by 32.2 million labor force in June increased by 7.1 thousand people, compared with May. Average hourly earnings in June, +2.2% y / y Proportion of the economically active population of 66.7% in June against 66.7% in May.
In addition, another report showed that business activity index managers seasonally adjusted fell to 55.3 in June, but remained in expansion territory, indicating that purchasing activity in Canada has increased in May. Recall that the display shows the level of business activity of the industrial sector. More than fifteen hundred managers from different regions and industries are asked to evaluate the level of purchases compared to the previous month (above, below or at the same level). The indicator value above 50 indicates an increase in purchases and the value below 50 indicates a decrease.
A leading indicator of Japan's business conditions grew faster than expected in May, preliminary data released by the Cabinet Office showed Friday.
The composite leading index rose to 110.5 in May from an upwardly revised 107.7 in April and 106.2 in March.
The coincident economic index, which measures the current activity, moved up slightly to 105.9 from a revised 105.1 in April.
Meanwhile, the lagging index, a measure of firms' past performance, dropped to 108.9 in May from 109.2 in the previous month.
EUR/USD $1.2800, $1.2850, $1.2900 (Large), $1.2935, $1.3000, $1.3050
USD/JPY Y98.00, Y98.50, Y98.60, Y99.00, Y99.20, Y99.25, Y99.40, Y99.75, Y100.00, Y100.50, Y101.00, Y101.50
AUD/USD $0.9215, $0.9245, $0.9260, $0.9400, $0.9420, $0.9500
GBP/USD $1.5000, $1.5150, $1.5200, $1.5300
EUR/JPY Y129.00, Y129.80
EUR/CHF Chf1.2300
EUR/GBP Stg0.8450, Stg0.8575
EUR/AUD A$1.4300
USD/CHF Chf0.9500, Chf0.9525, Chf0.9575
Employment
in the
The report
said non-farm payroll employment increased by 195,000 jobs in June, matching
the revised job growth seen in May.
Economists
had been expecting employment to increase by about 160,000 jobs compared to the
addition of 175,000 jobs originally reported for the previous month.
Despite the
stronger than expected job growth, the unemployment rate came in unchanged at
7.6 percent. The unemployment rate had been expected to edge down to 7.5
percent.
EUR/USD
Offers $1.3040/50, $1.3000, $1.2975/80, $1.2940/50
Bids $1.2870, $1.2860/50, $1.2830/20, $1.2805/00, $1.2750
GBP/USD
Offers $1.5130/35, $1.5110, $1.5090/00, $1.5075/80, $1.5020/25
Bids $1.4955/50, $1.4900, $1.4855/50
AUD/USD
Offers $0.9285/90, $0.9245/50, $0.9220/25, $0.9200, $0.9175/80
Bids $0.9125/20, $0.9100, $0.9075/70, $0.9050, $0.9000
EUR/GBP
Offers stg0.8715/20, stg0.8690/95, stg0.8640, stg0.8625
Bids stg0.8500
EUR/JPY
Offers Y130.80, Y130.50, Y130.00, Y129.85/90
Bids Y129.00, Y128.55/50
USD/JPY
Offers Y101.25, Y101.00, Y100.90, Y100.45/50
Bids Y99.80, Y99.50/45, Y99.40, Y99.25/20, Y99.00
The French trade deficit increased significantly in May due to a notable decline in exports, data from customs office showed Friday.
The trade gap widened to EUR 6.01 billion in May from EUR 4.48 billion in April. The shortfall was forecast to increase to EUR 4.6 billion.
Exports declined to EUR 36.09 billion from EUR 37.7 billion in the prior month. Imports, at the same time, remained almost unchanged at EUR 42.1 billion.
Swiss consumer prices declined less than expected in June, a report from the Federal Statistical Office showed Friday.
The consumer price index fell 0.1 percent year-on-year in June compared with forecast for a 0.4 percent decline. This followed a 0.5 percent drop in May and 1.1 percent fall in June 2012.
Month-on-month, CPI rose 0.1 percent against forecast of 0.2 percent decline. This marginal increase can be attributed to higher prices of petroleum products and seasonal increase in fruit and vegetable prices.
EUR/USD $1.2800, $1.2850, $1.2900 (Large), $1.2935, $1.3000, $1.3050
USD/JPY Y98.00, Y98.50, Y98.60, Y99.00, Y99.20, Y99.25, Y99.40, Y99.75, Y100.00, Y100.50, Y101.00, Y101.50
AUD/USD $0.9215, $0.9245, $0.9260, $0.9400, $0.9420, $0.9500
GBP/USD $1.5000, $1.5200, $1.5300
EUR/JPY Y129.00, Y129.80
EUR/CHF Chf1.2300
EUR/GBP Stg0.8450, Stg0.8575
EUR/AUD A$1.4300
USD/CHF Chf0.9500, Chf0.9525, Chf0.9575
05:00 Japan Leading Economic Index May 99.0 101.2 110.5
05:00 Japan Coincident Index May 95.3 96.2 105.9
The greenback rose toward its strongest in more than a month against the yen, euro and pound while the Dollar Index touched a five-week high amid speculation improvement in the U.S. economy will prompt the Federal Reserve to curb stimulus. The U.S. Labor Department will probably say today companies added 165,000 positions last month after increasing them by 175,000 in May, according to the median estimate by economists surveyed by Bloomberg News. A separate poll predicted the jobless rate fell to 7.5 percent from 7.6 percent in the previous period.
The euro and pound slid after European Central Bank President Mario Draghi and Bank of England Governor Mark Carney signaled they will keep borrowing costs at record lows. Draghi said yesterday in Frankfurt the central bank planned to keep the euro area’s main refinancing rate at a record-low 0.5 percent or even lower for an “extended period” and that it was injecting a “downward bias in interest rates for the foreseeable future.” The BOE said in a statement yesterday in London the “implied rise in the expected future path of bank rate was not warranted by the recent developments in the domestic economy” after officials left the bank’s benchmark rate and bond-purchase program unchanged. The policy meeting was the first one led by Carney.
EUR / USD: during the Asian session the pair fell to $ 1.2885
GBP / USD: during the Asian session the pair fell to $ 1.5025
USD / JPY: during the Asian session the pair rose to Y100.45
The US market returns from the Independence Day holiday and jumps straight back into the fray with the monthly employment report. There is also expected on the Continent and comments from ECB officials in the wake of the "forward guidance" offered by President Draghi at the Thursday meeting. Data kicks off at at 0645GMT, when the May French trade data will be published. From 0730GMT, Germany's upper house debates and votes on the 2013 supplementary federal budget. Finance Minister Wolfgang Schaeuble will likely speak at some point in the debate. At 1000GMT, German May manufacturing orders data is set for release. Factory orders are seen up 1.2% on the month, higher by 0.1% on year. ECB Executive Board member Benoit Coeure will deliver a speech to the Amundi World Investment Forum, in Paris at 1030GMT. At 1100GMT, ECB Governing Council Member Erkki Liikanen and EU Economics and Monetary Affairs Commissioner Olli Rehn are due to speak in Mikkeli, Finland. The main release comes at 1230GMT, when the US Jun Non-farm Payrolls, Unemployment and average earnings numbers will cross the wires. Nonfarm payrolls are forecast to rise by 160,000 in June after a larger-than-expected 175,000 increase in May. The unemployment rate is expected to fall back to 7.5% after rising to 7.6% in May. Hourly earnings are forecast to rise 0.2%, while the average workweek is expected to hold steady at 34.5 hours. Late US data sees the release of the June Treasury STRIPS data at 1900GMT and the Money Supply (M2) numbers for the June 24 week at 2030GMT.
(pare/closed(00:00 GMT +02:00)/change, %)
EUR/USD $1,2911 -0,75%
GBP/USD $1,5073 -1,36%
USD/CHF Chf0,9562 +1,00%
USD/JPY Y100,11 +0,14%
EUR/JPY Y129,29 -0,58%
GBP/JPY Y150,87 -1,21%
AUD/USD $0,9140 +0,62%
NZD/USD $0,7830 +0,80%
USD/CAD C$1,0516 +0,13%
05:00 Japan Leading Economic Index May 99.0 101.2
05:00 Japan Coincident Index May 95.3 96.2
06:45 France Trade Balance, bln May -4.5 -4.5
07:00 Switzerland Foreign Currency Reserves June 441.4
07:15 Switzerland Consumer Price Index (MoM) June +0.1% -0.1%
07:15 Switzerland Consumer Price Index (YoY) June -0.5% -0.4%
10:00 Germany Factory Orders s.a. (MoM) May -2.3% +1.3%
10:00 Germany Factory Orders n.s.a. (YoY) May -0.4% +0.1%
12:30 Canada Unemployment rate June 7.1% 7.1%
12:30 Canada Employment June +95.0 -12.3
12:30 U.S. Average workweek June 34.5 34.5
12:30 U.S. Average hourly earnings June 0.0% +0.2%
12:30 U.S. Unemployment Rate June 7.6% 7.5%
12:30 U.S. Nonfarm Payrolls June 175 162
14:00 Canada Ivey Purchasing Managers Index June 63.1 59.6