Weekly Overview – Markets Lower Post French Elections
- US labour market report for April came out stronger than expected with NFP at 211k, and unemployment fell to 4.4% vs. 4.6% expected. Following the weak March report, the US economy is once again showing a healthy development and back above the yearly NFP average at 186k.
- French elections showing a landslide win to Macron over Le Pen. European markets have acted on “buy rumour, sell fact” and are generally trading lower on Monday, with the CAC40 leading the losses.
- EUR-pairs gapped higher on the opening on back of the French elections with EURUSD touching 1.10 for the first time since November 2016. However, the pair has sold off and respected trend resistance projected from 2016 highs.
- Commodities continue selling off which also affects commodity-linked currencies (AUD, CAD and NZD).
- This week will start out light on the macro front, but pick up on Thursday/Friday, where the BoE will release rates as well as the Inflation Report. From the US, we have CPI and Retail Sales and Consumer Sentiment on Friday. German GDP on Friday should also be noted.
- From Asia, we have the RBNZ releasing rates on Wednesday (exp. unchanged at 1.75%) as well as inflation data from China as the main figures.
Read the full weekly overview here: 20170508 – weekly
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