Dollar Weakness Continues as Focus Shifts to Non-Farm Payroll Data

Action Insight Daily Report 5-3-24

Dollar Weakness Continues as Focus Shifts to Non-Farm Payroll Data

Dollar weakens broadly in Asian session, continuing its selloff from the previous night, as influenced by rebound in US stocks and falling treasury yields. The focus is now squarely on today's non-farm payroll report, a key indicator closely monitored by Fed policymakers. Preliminary data suggest possibility for an upside surprise in the jobs figures

For the Federal Reserve to consider rate cuts, there needs to be a clear trend of loosening in the job market that could contribute to cooling domestic inflation. Strong employment data today would suggest that high interest rates would need to persist longer than some investors anticipate, maintaining a restrictive policy environment to temper inflation pressures...

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EUR/USD Daily Outlook

Daily Pivots: (S1) 1.0689; (P) 1.0710; (R1) 1.0745; More...

Range trading continues in EUR/USD and intraday bias stays neutral. On the upside, break of 1.0752 will resume the rebound from 1.0601. Sustained trading above 55 D EMA (now at 1.0769) will argue that fall from 1.0980 has completed. On the downside, though, break of 1.0648 will retain near term bearishness and bring retest of 1.0601 low first.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
06:45 EUR France Industrial Output M/M Mar 0.30% 0.20%
08:00 EUR Italy Unemployment Mar 7.50% 7.50%
08:30 GBP Services PMI Apr F 54.9 54.9
09:00 EUR Eurozone Unemployment Rate Mar 6.50% 6.50%
12:30 USD Nonfarm Payrolls Apr 243K 303K
12:30 USD Unemployment Rate Apr 3.80% 3.80%
12:30 USD Average Hourly Earnings M/M Apr 0.30% 0.30%
13:45 USD Services PMI Apr F 50.9 50.9
14:00 USD ISM Services PMI Apr 52.3 51.4