US NFP and UK PMI amongst market movers today – Danske Bank

Sandeep Kanihama FXStreet Contributor

Analysts at Danske Bank suggest that even though significant market attention will be on the new government in Italy that was formed last night and what policy signals it will send with regard to its economic and EU policy programme, but UK manufacturing PMI and US NFP will also gauge some market attention in today’s session.

Key Quotes

“In the UK, we also get the PMI manufacturing index for May. The UK index is more volatile (bigger swings) than the equivalent index for the euro area, and since it fell in May, the UK index may very well follow. We estimate a fall to 53.6 from 53.9.”

“The market will also focus on trade tensions between the US and EU countries, Canada and Mexico.”

“On the data front, the most important release of the day is the US jobs report for May. Once again, average hourly earnings is the key number to watch. We estimate wages rose +0.2% m/m in May, in line with the recent trend, implying an unchanged annual growth rate of 2.6% y/y. We estimate that nonfarm payrolls rose 190,000 and the unemployment rate was unchanged at 3.9%.”

“Based on the regional PMIs and Markit PMI manufacturing, US ISM manufacturing probably rose and we think it may have rebounded from 57.3 to 58.0. This does not change our overall view that the US manufacturing indices should move lower in 3-6M.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.