US Job Numbers On Investor Minds

US LABOR MARKET IN THE SPOTLIGHT

Yesterday, the US released some of its labor market related data. Among the data were the US initial and continuing jobless claims figures for the past week, together with the ADP nonfarm employment change reading for the month of May. The latter one managed to come as a positive surprise, beating the forecast of 650k and showing up at 978k. Traders and investors do look at the ADP figure in order to try and gauge the outcome for the main NFP number, however, we have always noted that the two data sets do not always go hand in hand with each other.

USD/CAD — TECHNICAL OUTLOOK

From around mid-May, USD/CAD continues to trade within a range, which is roughly between the 1.2013 and 1.2137 levels. Currently, the rate is closer to the upper side of the that range, which increases the chances of seeing a breakout through the 1.2137 barrier. That said, until the actual break happens, we will take a neutral stance.

EURO STOXX 50 — TECHNICAL OUTLOOK

Although the Euro Stoxx 50 index continues to trade well above the short-term tentative upside support line taken from the low of May 13th, for the past two weeks the price has been moving within a rising channel pattern. As long as the index continues to trade within that channel, we will stay strongly bullish.

AS FOR THE REST OF TODAY’S EVENTS

Canada is also set to release its jobs numbers for May. The unemployment rate is expected to increase slightly, from 8.1% to 8.2%. The employment change is believed to have improved, going from -207.1k to -20.0k. From Europe we will receive the eurozone’s retail sales numbers for April, both MoM and YoY ones. The MoM is expected to decline from +2.7% to -1.2%, whereas the YoY reading is forecasted to go from 12.0% to 25.5%.

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