The United States Dollar enters the morning, finally finding a moment of relative calm as the Easter banking holidays begin around the world.
Overview
Yesterday’s trading session was dominated by recession fears as the string of negative data releases continued with services PMI for the month of March. Though not quite reaching contraction territory, the figure posted showed a sharp decline in growth and caused markets to price in higher odds of a US recession.Yesterday and this morning also saw the release of two more employment stat lines. ADP Employment Change came in substantially below expectations at 145,000, and this morning initial jobless claims rose slightly to 228,000. The prior week’s initial claims were revised upward as well. These negative figures have actually helped to give the Buck a slight bit of strength against some majors as it provides the Federal Reserve with a clearer mandate on forward action.Tomorrow morning the US eyes the monthly non-farm payroll release even as many major markets in Europe and North America are closed for the Easter holidays. Traders are reluctant to push through major volume ahead of both the holidays and this data release.
What to Watch Today…
- No major economic events are scheduled for today
- Monex USA Online is always open
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CAD ⇓
The “Loonie” opens the morning weaker against USD even as hiring paces in Canada showed no signs of slowing. Canadian employment growth came in above expectations for a fourth straight month and the nation’s unemployment rate held steady near its record low. Though these figures show resilience in the Canadian economy, they also show the hot labor market is not responding to the Bank of Canada’s previous rate hikes and test the central bank’s commitment to a rate pause.
CHF ⇑
The Swiss Franc was the best performer out of the G10 group yesterday, touching its strongest price against USD since August of 2021. Global economic jitters and talk of a potential recession out of the US are driving flows back to the traditional haven currency as investors look for a safer bet amidst widespread uncertainty.
