Analysts at Westpac explained that markets traded mostly quietly into the weekend, though CAD slumped on soft April Canada jobs data.
Key Quotes:
“On Sunday, Italy’s political standoff was reportedly resolved. AUD/USD traded tight ranges in the mid-0.75s. Today’s global data calendar is light but we will hear plenty from the ECB and also from the Fed.”
“The US dollar drifted slightly lower against most majors in London trade and was quiet in NY. EUR/USD rose from 1.1920 to 1.1966. Over the weekend, Italy seemed set to finally have a government – two months after the elections – with anti-establishment 5 Star Movement and far right League parties reportedly reaching a coalition agreement.
“USD/JPY ranged between 109.15 and 109.45. AUD rose from 0.7540 to 0.7567 and then consolidated. NZD rose from 0.6960 to 0.6987 and then consolidated. AUD/NZD rose from 1.0820 to 1.0843 – a three month high.”
“Canada employment slipped 1k in April, a long way below consensus for +20k though after a decent 32k rise in March and with full-time jobs up 29k. The unemployment rate held at 5.8% as the participation rate continued to weaken. USD/CAD bounced from 1.2730 to 1.2790/1.2800.”
“US May consumer sentiment (University of Michigan) remained upbeat, at 98.8. The US 10yr treasury yield fluctuated between 2.95% and 2.98%, closing unchanged at 2.97%. 2yr yields drifted sideways between 2.53% and 2.54%. Fed fund futures yields continued to price in two more rate hikes by year-end.”
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