Morning Commentary: A Little Something for Everyone
A daily summary and commentary of events and factors that affect the global markets, with a particular emphasis on the foreign exchange markets.
A Little Something for Everyone
Share this story:
Alan Rose Foreign Exchange Senior Trader
Market participants, traders, and investors do a pretty quick job of parsing economic data to look beyond the headline prints that sometimes can be misleading relative to the whole story. On the surface, today’s U.S. Labor Department report on employment looked exceptionally strong with job creation outpacing estimates and the UR dropping to a low not seen since December 1969. But, the underlying data was not as strong and U.S. interest rates are nearly unchanged, U.S. equities are scheduled to open slightly higher and the U.S. dollar (DXY) is slightly stronger for the third day in a row after falling in the previous three days.
The U.S. created 263,000 in April against expectations of a gain of 190,000. The UR dropped from 3.8% to 3.6%, and those two numbers are making all the headlines. However, average hourly earnings (AHE) came in below expectations at 0.2% with the YoY rate remaining at 3.2%. The Labor Force Participation rate dropped from 63.0% to 62.8% which takes away from the drop in the UR to 3.6%. All in all, this is a rock solid report with a little something for everyone and continues to portray an economy that is humming along providing the backdrop for potentially the longest peacetime expansion since World War II.
HERE ARE THE KEY NEWS STORIES FROM OVERNIGHT:
EZ CPI for April came in stronger than forecast at 1.7% YoY compared to the 1.4% in March with core prices also rising to 1.2%. This is the highest reading since November. The slightly higher inflation reading was no help for the euro today as it is fractionally weaker and down for the third day in a row after rising for three days in a row.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Non-deposit investment products:
Are not FDIC insured,
Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and
Are subject to investment risks, including possible loss of the principal invested.
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Now accepting scholarship apps Celebrating 40 years of service -- A loan to an innovative company -- Affording your dream home -- Mergers and a new branch in Raleigh View this email in your browser Forward to a friend
Your Market News update for May 30, 2019 | View online Market News News that's moving the market now As Trade-War Worries Linger, Market Seems to Lack Buying Conviction May 30, 2019 8:40 AM | JJ Kinahan 6 min read | Daily Market Update