Keep an eye on the employment data from Canada and the U.S.

Keep an eye on the employment data from Canada and the U.S.

08.07.2022

The U.S. dollar strengthened against the euro yesterday, with the EUR/USD pair falling by approximately 70 pips from 1.0221 to 1.0143. The number of new U.S. unemployment insurance claims released yesterday rose by about 4,000 from the previous week to 235,000, exceeding market expectations. This was driven by a lull in concerns over a U.S. recession, which helped the dollar hold its ground against further declines.

Among European currencies, the pound strengthened against both the yen and the U.S. dollar yesterday following the announcement of Prime Minister Johnson’s resignation, with the GBP/JPY pair rising by approximately 2 yen from 161.574 to 163.599. Prime Minister Johnson has indicated that he intends to remain in office until a new party leader is elected. However, since the GBP/JPY pair has already fallen by more than 1.2 yen during today’s Asian trading session, investors should keep a close eye on its direction.

Today, at 3:45 p.m. Asia time, France’s trade balance and current account will be released; at 4:00 p.m. Europe time, Turkey’s current account will be released;at 20:55, remarks by ECB President Lagarde; at 21:30 during U.S. trading hours, Canadian and U.S. employment reports; at 23:00, U.S. wholesale inventories; at 24:00, remarks by New York Fed President Williams; and at 28:00, U.S. consumer credit balances. We should pay close attention to the Canadian and U.S. employment report results during U.S. trading hours.