The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Coronavirus impact on US labor market: latest news
Information is not investment advice
The 1st of April came with some good news that only 27,000 people became unemployed in private sector. Yes, the Covid-19 virus has turned the world upside down, and we are just happy that the numbers haven’t been as bad as expected(i.e. 150,000).
This report is called ADP and it provides an early look at the employment data , generally 2 days before the release of the government report “Non-Farm Employment Change”, which is more reliable.
It’s important to highlight, the ADP is based on data from March 1 to March 12, what means that it’s not fully reveal the damage caused by coronavirus.
Another report was published today, which is called “Unemployment claims”. It said that 6,648,000 people filed for unemployment insurance for the first time during the past week. Nobody could have imagined that! The forecast was 3.6 million. Although the US dollar status is considered as a safe-heaven currency, it could come under pressure and drop.
Moreover, tomorrow we will see a broader picture of the current situation as non-farm payrolls, unemployment rates and average hourly earnings will be published.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
The US NFP will be published on August 7 at 15:30 MT time.
The RBA will make a rate statement on August 4 at 7:30 MT time.