The Economic Data for the week is in. The dollar weakened against most currencies on Thursday after economic data showed more signs of weakness in the US jobs market, while the pound recovered from earlier lows after the bank fell. Also, England has opened the door to tax reduction.
Weekly state jobless claims rose by 22,000 to a seasonally adjusted 231,000, the highest level since late August last year.
The data followed last week’s weaker-than-anticipated U.S. payrolls report and other data that showed job openings fell to a three-year low in March.
The pound had dropped to a low of $1.2446, its weakest level since April 24, after the Bank of England (BoE) paved the way for an interest rate cut.
The BoE’s Monetary Policy Committee had voted 7-2 to keep the central bank’s key policy rate at a 16-year high of 5.25%, with Deputy Governor Dave Ramsden joining Swati Dhingra in voting for a cut to 5%. BoE Governor Andrew Bailey said it was possible the central bank would need to cut rates by more than investors expect.
Gold prices climbed after fresh Labor Department data indicated that the number of Americans filing new unemployment claims rose more than expected last week, which anticipated bets of a rate cut by the Federal Reserve this year.
Crude Oil prices edged up to a one-week high on data from China and the U.S. signaling demand in the world’s two biggest crude-consuming nations could climb. In China meanwhile, crude oil imports rose on the previous year in April and exports and imports returned to growth last month, indicating an increase in demand at home and overseas as Beijing moves to shore up a shaky economy
However, market predicted that ebbing labor market momentum puts two interest rate cuts from the U.S. Federal Reserve this year back on the table.
Limiting those price gains was U.S. energy data showing gasoline and diesel demand last week was the weakest since the 2020 coronavirus pandemic.
MCX gold futures settled +0.72% to 71639.Silver settled +1.88% to 84499. Copper settled +0.57% to 859.85. Crude oil +0.29% at 6606. Natural gas 4.71% to 191.1.
Economic data and events scheduled
Japan
At 5.20am
Bank Lending y/y. Data is foreseen at 3.1% from previous 3.2%.
Current Account. Data is foreseen at 2.04T from previous 1.37T.
At 10.30am- Economy Watchers Sentiment. Data is foreseen at 50.4 from previous 49.8.
Above data could have a positive impact on the Yen.
Eurozone
At 1.30pm- Italian Industrial Production m/m. Data is foreseen at 0.3% from previous 0.1%.
At 5.00pm- ECB Monetary Policy Meeting Accounts
Above data could have a neutral impact on the Euro.
UK
At 11.30am-
GDP m/m. Data is foreseen at 0.1% from previous 0.1%.
Prelim GDP q/q. Data is foreseen at 0.4% from -0.03%.
Goods Trade Balance. Data is foreseen at -14.5B from previous -14.1B.
Above dataa could have a volatile impact on the Pound.
US
At 6.30pm- FOMC Member Bowman Speaks.
At 7.30pm-
Prelim UoM Consumer Sentiment. Data is foreseen at 76.3 from previous 77.2.
Prelim UoM Inflation Expectations. Previous was at 3.2%.
At 11.00pm – FOMC Member Barr Speaks.
At 11.30pm- Federal Budget Balance.
Above data could have a volatile impact on the dollar.
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Commodity Samachar
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