The U.S. Dollar is trading in mostly familiar ranges this morning following a Non-Farm Payrolls Report falling mostly in line without major surprises.
Overview
Although the actual print came in at 390K over the 318K expected, the previous April numbers were downwardly revised. Average Hourly Earnings failed to meet the 0.4% expansion estimated for May, showing that consumers are feeling tightness as prices go up at a way faster pace than wages. Unemployment went up to 3.6% from 3.5% as likely more people look for work with most pandemic concerns mostly out the window for most businesses.At the moment, the buck has little action going for it or against it as the NFPs failed to make the impact some economists felt if the reading had been stronger. Another month of over 400K could have added to increased bets that the tightening by the Fed could get more aggressive. Ultimately, we have not been impressed by domestic economic figures lately and feel that opens up more room for Dollar depreciation.
What to Watch Today…
- No major economic events scheduled for today
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EUR
The Euro has maintained its gains from last week although economic data points to continuing struggles for the Euro-zone. The S&P global Euro-zone Composite Purchasing Managers Index came in just below the expected 54.9 reading at 54.8. In addition, Retail Sales for April surprisingly contacted by (-1.3%) when a small expansion was expected.
With the ban on Russian energy imports taking effect, expect some issues short-term while the European Central Bank looks into hiking interest rates to primarily cut inflationary pressures. All markets, including the U.K., will be back open on Monday.
MXN
The Mexican Peso erased its weekly loss as oil and commodity markets continued to thrive in the midst of a recovery from the supply-chain woes affecting the globalized inter-dependence in turmoil by the pandemic. Oil prices remained on the up and up even as the U.S. looks to Saudi Arabia and Venezuela for better access t supplies.
OPEC+ also vowed this week to add to production and yet the price per barrel was resilient. We shall see how plans for a train across Mexico by AMLO affect the Peso flows short-term as ambitious projects in the past like the Airport in Mexico City failed to materialize.
