The U.S. Dollar finds itself in negative territory, once again, as Labor-related data is starting to show signs of softening for the economy.
Overview
At the time of writing, the release of ADP Employment Change for May came in much lower than expected with an actual number of 37K jobs added instead of the 114K expected. This follows underwhelming JOLTS data from yesterday showing that less people are quitting their positions while layoffs also outgrew estimates. Overall, the news cycle has also not been market-friendly with posts from the U.S. President suggesting that a deal with China will be very difficult to achieve as he considers China’s leadership too demanding.
The constant back-and-forth about tariff implementation, or their delays, will keep markets guessing where the economy will head. It is clear that outlooks are predicting pain if there is no clarity about trade in the near as well as long-term future. With U.S. data showing struggles across variables, the Buck can only be in more trouble as bets increase that the Fed will need to step in to assist a fragile financial environment in the second half of the year. We shall see S&P Global U.S. Composite Purchasing Managers Index readings from May at 9:45AM.
What to Watch This Week…
- US Nonfarm Payrolls, Friday 8:30 AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇑
The Euro is on the rise once again, being helped by supporting data as well as confidence in global risk-appetite. Earlier during the European trading session, the HCOB Euro-zone PMI for the month of May surprised coming in higher than forecast with a reading in positive territory above 50.0 at 50.2 when 49.5, on the pessimistic side, was estimated. Additionally, the measure of MSCI Global Stocks Index hit its highest level on record, aided by Asian as well as European equities. The domestic Stoxx 600 Index climbed 0.3%, the most it has grown in a week. European Central Bank meeting and presser will be happening first thing in morning when we come in tomorrow.
MXN ⇑
The Mexican Peso is trading at a fresh new best level since September as economic indicators help while global stocks also grow. A measure of investment in the form of Gross Fixed Investment showed a 0.3% increase, while the prior month’s figure was also upwardly revised from 0.1% to 0.3%. Private Consumption also grew 1.2% for the month, overcoming a decline in previous months. Tomorrow, we will get Consumer Confidence from May, which if positive, could add to MXN rally over the Buck.
