May Day! Growth concerns?

<p>The majority of the Asian and European bourses are closed today for the Labour Day holiday so the FX markets await NFP data tomorrow following […]</p>

The majority of the Asian and European bourses are closed today for the Labour Day holiday so the FX markets await NFP data tomorrow following a slew of US data yesterday.

The FOMC had been touted as a non-event, with the June meeting highlighted for fresh economic projections from the Fed along with a press conference from the Chair Janet Yellen. The committee continued to taper asset purchases by $10bn per month – again split evenly between treasuries and MBS’s.

The FOMC statement was mixed as they noted economic activity had picked up recently after having slowed during the winter due to the adverse weather conditions.

US data released yesterday was mixed as the ADP survey hinted at a strong labour market, as did the employment component of ISM survey, with the consensus for tomorrows NFP headline being 220,ooo.

The slowdown evident in US Q1 GDP has been attributed to exports. Analysts have suggested this will be down to our favourite benign data excuse, ‘the weather’.

The markets remain in data watching mode and there’s a possibility that a benign payroll number tomorrow, following on from the weaker Chinese manufacturing PMI data released last night, could be the final catalyst to spook the rosy risk environment.

As mentioned, most of Europe is on holiday today so the data calendar remains bleak, with only mortgage approvals and manufacturing PMI data from the UK this morning and the US session bringing us the weekly jobless claims reading followed by US manufacturing data.




Supports 1.3860-1.3830-1.3785 | Resistance 1.3900-1.3915-1.3965




Supports 102.10-101.80-101.30 | Resistance 102.50-102.80-103.20




Supports 1.6840-1.6800-1.6750 | Resistance 1.6900-1.6940-1.7000


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