All Eyes Shift to U.S. Employment Report

All Eyes Shift to U.S. Employment Report

Initial claims for unemployment benefits declined by 16k last week to a nearly 3-month low of 254k, showing no evidence of rising layoffs ahead of Friday's employment report.

The number of individuals filing for initial jobless benefits in the week ending 2nd July unexpectedly fell by 16k to 254k from the previous week’s revised 270k, the U.S. Department of Labor said yesterday.

U.S. dollar index surged by 20 pips to settle at 96.30.

Financial markets are awaiting the June jobs report, the unemployment rate is expected to hike slightly to 4.8% from 4.7% in May. On the other hand, the employment report is expected to show a rebound to 175k nonfarm payrolls.

Gold prices declined to $1,360 during yesterday’s trading session, as traders took profits ahead of the release of widely anticipated jobs data.

Euro declined as the EU Commission began a formal sanction procedure against Spain and Portugal. Euro traded below $1.1050 and could decline further to $1.10 during the course of the day.

In the week through 1st July, US commercial crude stockpiles declined by 2.2 million barrels to a total of 524.4 million, according to the EIA.

The most important economic events:

  • USD Unemployment Rate (JUN): (GMT 14:30) Important – Forecast (4.80%) – Previous (4.70%).
  • USD Change in Non-farm Payrolls (JUN): (GMT 14:30) Important – Forecast (180k) – Previous (38k).
  • CAD Unemployment Rate (JUN): (GMT 14:30) Important – Forecast (7.0%) – Previous (6.9%).
  • CAD Net Change in Employment (JUN): (GMT 14:30) Important – Forecast (6.5k) – Previous (13.8k).

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