A Quiet Economic Calendar Leaves U.S Jobless Claims and the Greenback in Focus

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar. this morning. The Japanese Yen and the Aussie Dollar were in action this morning.

For the Japanese Yen

Trade data was in focus this morning.

In April, Japan’s trade surplus narrowed from ¥662.2bn to ¥255.3bn. Economists had forecast a narrowing to ¥140bn.

According to figures released by the  Ministry of Finance,

• Exports jumped by 38.0%, with exports to China surging by 33.9%.
• To Western Europe, exports rose by 40.7%, with exports to the U.S up 45.1%.
• Imports rose by 12.8%, with imports from Western Europe up 19.4%.
• From the U.S, imports rose by a relatively modest 5.8%.

The Japanese Yen moved from ¥109.293 to ¥109.247 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.09% to ¥109.12 against the U.S Dollar.

For the Aussie Dollar

All-important employment figures were in focus this morning. In April, employment fell by 30.6k, partially reversing a 70.7k jump from March.

According to the ABS,

• The unemployment rate fell to 5.5%, marking a 6^th consecutive fall in the unemployment rate that had stood at 6.9% in Oct-2020.
• A fall in the participation rate from 66.3% to 66.0% contributed to the decline in the unemployment rate in April.
• In the month, there was a 33.8k rise in full employment, however.

The Aussie Dollar moved from $0.77331 to $0.77363 upon release of the minutes. At the time of writing, the Aussie Dollar was up by 0.12% to $0.7737.

Elsewhere

At the time of writing, the Kiwi Dollar was down by 0.03% to $0.7168.

The Day Ahead

For the EUR

It’s a particularly quiet day ahead on the economic data front. There are no material stats due out of the Eurozone to provide the EUR with direction.

Continued reaction to the overnight FOMC meeting minutes and market sentiment towards the Eurozone economic recovery will be key on the day.

At the time of writing, the EUR was up by 0.06% to $1.2182.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. CBI industrial trend orders for May are due out later today.

In the past, we have seen Pound sensitivity to the numbers. With optimism towards the economic outlook picking up, we would expect sensitivity to the CBI numbers to also return.

At the time of writing, the Pound was up by 0.01% to $1.4116.

Across the Pond

It’s a relatively busy day ahead on the economic calendar.. Philly FED Manufacturing numbers for May are due out along with the weekly jobless claim figures.

While we can expect influence from the Philly FED numbers, the initial jobless claims figure will be key.

A fall towards sub-400k levels would fuel market optimism, while a return to 500k levels would test support for riskier assets. Particularly impressive numbers would fuel speculation of a near-term policy adjustment by the FED…

At the time of writing, the Dollar Spot Index was down by 0.01% to 90.180.

For the Loonie

It’s a particularly quiet day ahead on the economic calendar. There are no material stats from Canada to provide the Loonine with direction.

The lack of stats will leave the Loonie in the hands of market risk sentiment on the day.

At the time of writing, the Loonie was up by 0.12% to C$1.2118 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.