U.S./Canada: Caution Over Employment Data Results
06.08.2021
- U.S. Employment Report
- Rice · Outstanding Consumer Credit
Yesterday, stock prices rose in the U.S. market, creating a risk-on environment characterized by rising stock prices, interest rates, and oil prices.The U.S. Challenger job cuts figure for July, released yesterday, came in at 18,900, down about 7.5% from the previous month and the lowest level in 21 years. Despite concerns that job cuts could reduce labor market flexibility, stock prices remained firm. Bonds were sold off, and the yield on the 10-year U.S. Treasury note recovered to the 1.2% range, currently standing at around 1.23%.
The U.S. dollar has risen as the yield on the 10-year U.S. Treasury note has rebounded. The USD/JPY pair has broken above the resistance zone formed by the 200-period simple moving average (SMA) on the hourly chart and is currently trading around 109.8. While cross-yen pairs are generally trending higher, the AUD/USD pair, in particular, is showing stronger upward momentum and is trading within a range, similar to yesterday. The EUR/USD pair is trending lower and is currently trading around 1.182.
Today's economic indicators include German industrial production at 3:00 PM, Frenchtrade balance and current account balance at 15:45, UK Halifax house prices at 16:30, remarks by BOE Deputy Governor Broadbent at 20:15, Canadian and U.S. employment reports at 21:30, the Canadian Ivey PMI at 23:00, and U.S. wholesale inventories (final reading) and consumer credit balances at 23:00.We will be closely monitoring how today’s U.S. employment report affects the strength of the U.S. dollar.
Author: Keisuke Sakurai
