The highly anticipated US non-farm payrolls data delivered. The 288,000 gain far surpassed the consensus which should have sent the US dollar rocketing but Fridays trading session closed mixed as weekly bias for all majors remains mixed for now until a clear direction unfolds as the new week trading sessions continues. The reaction provides additional support to those that question the strength of the US recovery following the weak GDP data released on April 30, 2014.
The Labor Department reported Friday that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000. The U.S. unemployment rate dropped to a five and a half year low of 6.3%, compared to expectations for 6.6%. Reports also showed that the labor force participation rate, which measures the proportion of people either working or looking for work, fell to 62.8% from 63.2% in March. Average Hourly earnings also worsened from 0.2% to 0.1% which contributed to the greenback’s weakness.
The Employment data from the U.S. economy shows the fastest pace in more than two years which should propel strength for the single currency but investors reaction surprises market participants and so i recommend to stay clear off the markets in the first few days to see what happens as to enable reasonable decision.
However, we have a very busy fundamental week ahead which will aid us in making proper decisions in trading. These are the economic indicators i will suggest a close monitoring should be considered on.
Australian Interest Rate, Great Britain Pound Service PMI, Canadian Ivey PMI, New Zealand Employment Statistics, Australian Retail Sales, Australian Employment Statistics, Great Britain Pound Asset Purchase Facility/Interest Rate, Euro ECB Press Conference, Great Britain Pound Manufacturing Production and Canadian Employment Statistics.