Risk-on market profile drove the sentiment this NFP Friday, despite the negative close on the Wall Street overnight, as Treasury yields, Asian stocks and US equity futures traded with modest gains. Meanwhile, the US dollar extended its upside consolidation phase against its major peers, leaving most majors wavering in a tight trading range.
USD/JPY stuck to its 15-pips trading range, awaiting fresh impetus from the key US payrolls release, while EUR/USD remained exposed to downside risks near 1.1160 levels. GBP/USD traded modestly flat around 1.3030 region amid disappointing early results of the UK local elections.
Today’s macro calendar remains very eventful, with plenty of event risks, with the key US labour market report to steal the limelight and provide fresh USD direction for the coming days.
Ahead of the US data, markets look to the UK April services PMI release at 08:30 GMT, which is expected to improve heading into the second quarter. Next of relevance remains the Eurozone April flash CPI report due at 09:00 GMT alongside the PPI release.
The US payrolls and average hourly earnings data will be reported at 12:30 GMT later today, followed by the ISM non-manufacturing PMI at 14:00 GMT. Also, of note remains the US Baker Hughes oil rigs count data due at 17:00 GMT.
Oil benchmarks are trading in the red this Friday morning, having dropped sharply in the previous session on surging US production. Brent crude is currently trading at $70.50 per barrel, and a barrel of WTI crude is changing hands at $61.70. US oil exports rose above 3 million bpd for the first time this year, triggering fears that the market may remain well supplied despite the OPEC+ output cut deal and US' decision to force Iranian oil exports to zero.
Gold prices continued to drift lower as the US Dollar build on moves triggered by the FOMC policy announcement. From here, all eyes turn to April’s US jobs report.