All eyes are on whether the euro will fall against the dollar following the release of the employment report
05.05.2023
- U.S. Employment Report
- Canada: Employment Statistics
In the U.S. currency market yesterday, the U.S. dollar rose against the euro following the release of Q1 U.S. nonfarm labor productivity and unit labor costs, which rose from 3.2% to 6.3%.The EUR/USD pair fell by about 100 pips from 1.1091 to 1.0985. On the hourly chart, it broke below the 200-period SMA. However, since it remains above the 20-period MA on the daily chart, we will be watching to see if the US dollar maintains its strength over the weekend.
Following the ECB’s policy rate announcement yesterday, the euro fell against the yen after the central bank raised rates by 0.25% to 3.75%, in line with market expectations. The EUR/JPY pair fell from 149.192 to 147.138. On the hourly chart, it has broken sharply below the 200-period simple moving average (SMA).Following yesterday’s decline, EUR/JPY has fallen well below the 4-hour 75-period moving average (MA) and is now positioned just below the daily 20-period MA. We will closely monitor whether the euro recovers against the yen following the ECB announcement.
Today’s schedule includes German manufacturing orders at 3:00 PM, the Swiss Consumer Price Index at 3:30 PM, French industrial production and the French manufacturing production index at 3:45 PM, the UK Construction PMI at 5:30 PM, and Eurozone retail sales at 6:00 PM,remarks by SNB Governor Jordan at 18:00, Canadian Employment Statistics and U.S. Employment Statistics at 21:30, remarks by Fed Governor Cook and St. Louis Fed President Bullard at 02:00, and U.S. Consumer Credit at 04:00. We will be watching closely to see if the EUR/USD pair extends its decline following the U.S. Employment Statistics release.
Author: Keisuke Sakurai
