EUR/USD 1.16360
0.333%
Gold 4502.85
1.545%
Oil 91.066
-3.270%
USD/JPY 159.875
-0.126%
GBP/USD 1.34510
0.256%
GBP/JPY 215.054
0.133%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Google (GOOG.O): Announced new data centers and energy investments in Gray and Roberts counties, Texas.Apple (AAPL.O): The App Store ecosystem has reached $1.4 trillion.On June 4th, the World Gold Council, in its gold market commentary report, wrote that looking ahead, the Federal Reserve may need to raise interest rates as inflationary pressures rise. We believe that when rate hikes occur, they may counterintuitively benefit gold. Historical data shows that gold has performed positively after rate hikes in over 50% of cases. The importance of the US dollar to golds price movement appears to outweigh that of interest rates. The convergence of medium-term growth and yields, along with the trend of diversification from US assets, has paved the way for a weaker dollar in the future. Other factors also support gold: the structurally lower sensitivity of gold purchases by major gold-consuming countries like China and India, as well as by global central bank gold purchases, may provide further support for gold in the future.June 4th - Initial jobless claims in the U.S. for the week ending May 30th were 225,000, higher than the expected 213,000 and the revised previous weeks 212,000, marking the highest level since the first week of February. The four-week moving average was 214,750, higher than last weeks 208,250. Continuing jobless claims were 1,777,000, slightly lower than the expected 1,780,000. The rise in initial jobless claims indicates a weakening employment situation, but it remains relatively low and stable. Continuing jobless claims declined slightly. It should be noted that continuing jobless claims data has a one-week lag, so next weeks data will correspond to this weeks initial jobless claims data. U.S. stocks traded mixed in pre-market trading, with Dow Jones futures up 1%, S&P 500 futures down 0.22%, and Nasdaq futures down more than 1%. U.S. Treasury yields fell, with the 2-year Treasury yield at 4.039%, down 4.5 basis points; the 10-year Treasury yield at 4.455%, down 3.8 basis points; and the 30-year Treasury yield at 4.960%, down 3.0 basis points.OPEC Secretary General: Investment in the oil industry should not be affected by one-off events.

EUR/USD falls toward 1.0500 as the US labor market tightens and investors investigate Eurozone inflation

Daniel Rogers

Jan 06, 2023 11:19

 EUR:USD.png

 

In the early Tokyo session, the EUR/USD pair is hanging at the critical support level of 1.0520. The major currency pair is projected to prolong its slide to around the psychological support of 1.0500, as the United States' tight job market has spurred the threat of the Federal Reserve (Fed) sustaining rising interest rates beyond CY2023.

 

Investors applied heavy selling pressure on risk-perceived assets such as the S&P 500 as the better-than-anticipated addition of new payrolls to the U.S. labor market for the month of December could accelerate wage inflation in the future. Risk aversion was encouraged by investors, resulting in a jump in the US Dollar Index (DXY). The USD Index jumped to roughly 105.00 due to a boost in safe-haven demand. A reduction in investors' risk appetite affected the demand for United States government bonds.

 

The Automatic Data Processing (ADP) agency of the United States declared a large increase in the number of employment additions for the month of December, from 150K to 235K, compared to the previous release of 127K. It is abundantly evident that increasing demands for skill will be satisfied by paying higher remuneration, therefore stimulating wage growth and leaving individuals with more spare cash. The declaration could bring about a price index recovery through a spike in retail demand.

 

In the future, the United States Nonfarm Payrolls (NFP) statistics release will give further information on the employment situation. The Unemployment Rate is anticipated to continue at 3.7%. In addition, the disclosure of the facts regarding the Average Hourly Wage will be of the utmost importance.

 

Investors will eagerly scrutinize the release of the Eurozone Harmonized Index of Consumer Prices (HICP) numbers on Friday. In view of the fall in energy prices and German inflation, it is quite possible that Eurozone inflationary pressures will follow a similar trend.

 

As reported by Reuters, European Central Bank (ECB) policymaker Francois Villeroy de Galhau noted in a New Year's address: "It would be desirable to achieve the appropriate 'terminal rate' by the summer of next year, but it is too early to say at what level."


Suggestion