The US Dollar is struggling to find support ahead of today's release of US labor data. Currently, the consensus among economists polled is for new private sector jobs to fall to 185,000 in April, down from 196,000 in March. On Wednesday, ADP had reported 275,000 new jobs against expectations of a rise to 180,000; if the US Labor Departments figures fall in line similarly, analysts say that that could influence the interest rate outlook for the Federal Reserve Bank. The US central bank has a dual mandate of price stability coupled with full employment, and though markets seem to have lowered their expectations for a rate cut the jobs numbers, if realized as predicted, could solidify market sentiment.
As reported at 9:54 am (JST) in Tokyo, the USD/JPY was trading at 111.4200 Yen, down 0.0744%; the pair has ranged from a low of 111.409 Yen to a peak of 111.536 Yen in today's session. The EUR/USD was trading at $1.1176, up 0.0403% and just off the session peak of $1.11769. The GBP/USD was trading at $1.3036, a gain of 0.043%; the pair has ranged from a trough of $1.3030 to a high of $1.3038.
Markets Eye Eurozone PMIs
Also ahead later today is the release of preliminary April figures for personal inflation for the Eurozone, with analysts predicting a rise to 1.6% from 1.4% (year-over-year). Producer price inflation is expected to remain flat at 3% (year-over-year). Yesterday, Markit surveys reported that the latest PMI survey of the manufacturing sector in the EU came in with an upbeat reading of 47.9, somewhat better than the 47.8 which had been predicted but still falling below the 50.0 threshold which marks a contracting sector from an expanding one. Markit's Services sector surveys for April are due out on Monday and, so far, the consensus is predicting a flat reading of 52.5 for the Eurozone, with the Composite reading also flat at 51.3.