PREVIOUS TRADING DAY EVENTS 02 June 2023

Announcements   

The U.S. Bureau of Labor Statistics reported on Friday, at 1530, that the U.S. NonFarm payroll employment increased by 339K in May, way above expectations, and the U.S. Unemployment Rate rose to 3.7 versus the previous 3.4 figure. So, despite high hiring numbers, the unemployment rate increased.

The Mays nonfarm payrolls report shows high employment numbers thus strong labour market making it difficult for the Fed to keep rates unchanged. This is at least what the market is thinking, since the market reaction was heavy USD appreciation after the news release. 

The Fed has painted themselves into a corner with these most recent statements about the need to take a pause, and then maybe look to hike in July, and I think theyre going to regret it after todays nonfarm payroll number, said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi US.

The challenge is that weve entered the Feds blackout period ahead of the Federal Open Market Committee meeting, which means its going to be hard to see a pushback from officials or any guidance from officials after this employment report, said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Source

httpswww.reuters.commarketscurrenciesdollarwallowsjunefedbetsebbdebtceilingdealclose20230602

Summary Daily Moves Winners vs Losers 02 June 2023

AUDJPY reached the top of the winners list on Friday with a 1.53 price change….