Economic data coming up in the European session

A couple of light releases ahead of the US non-farm payrolls later today

US equities had a late surge yesterday to close at the highs with the S&P 500 clipping above 4,200 and the Nasdaq turning things around to close higher as well. The Dow continued its good form as it closed at yet another record high, above 34,500.

On the balance of things, the dollar was a little weaker with EUR/USD pushing back above its 100-day moving average @ 1.2047 and looking to hold above its 200-hour moving average @ 1.2060 currently as we head towards European morning trade.

The pound held steadier in general as the BOE said that it is going to slow down QE purchases. Some key takeaways from the central bank decision yesterday here.

USD/CAD continued is trip lower as the loonie is not letting up just yet, with the pair falling below its January 2018 low and now looks towards the September 2017 lows around the 1.2061-10 region.

CAD/JPY also secured a breakout to its highest levels since January 2018 and could be targeting a push well above 90.00 from a technical perspective.

As things stand, there is plenty of buzz on inflation in the market but Treasury yields haven’t really caught on with that just yet. The Fed has played that down this week and that is keeping equities buoyed ahead of what should be a strong payrolls figure today.

0545 GMT – Switzerland April unemployment rate

Prior release can be found here. The Swiss jobless rate is expected to keep steadier in April with underlying labour market conditions still largely obscured by the furlough program, so that makes it tough to read much into the release.

0600 GMT – Germany March industrial production data

Prior release can be found here. Factory output is estimated to bounce back a little at the end of Q1, with the year-on-year reading set for a big jump on base effect adjustments.

0600 GMT – Germany March trade balance data

Prior release can be found here. Trade conditions in Germany are expected to slowly keep pace with the recovery towards pre-virus levels, similar to elsewhere in the world.

0645 GMT – France March trade balance data

Prior release can be found here. Similarly, French trade conditions should also reflect a gradually improving trend back towards pre-virus levels throughout the year.

0700 GMT – Switzerland April foreign currency reserves

Prior release can be found here. A general gauge of FX interventions by the SNB.

0830 GMT – UK April construction PMI

Prior release can be found here. Amid the partial reopening and optimistic outlook attached to the vaccine rollout, UK construction activity should show a solid and upbeat reading in April – reflecting strong demand towards new projects.

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

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