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Markets await US and Canadian labor market data
image 4 June، 2021
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Today, Friday, June 4th, attention is directed towards the US and Canadian NFP labor market data, which will be released during the American session, as expectations indicate that about 645,000 jobs will be added in the non-agricultural sector in May in the United States of America, with a decline in unemployment rates to below 6 levels. % . Although signs of optimism began to be clear this week through the data that was announced, such as the employment data in the private sector issued by the ADP yesterday, Thursday, which recorded increases by about 978 thousand compared to 654 thousand in April, in addition to the decline in the weekly unemployment rate to below 400 For the first time since the outbreak of the Corona virus, there are also some indications that we may witness a negative surprise in the employment numbers, as happened in the April report. Starting with the employment component of the manufacturing and services sectors in the ISM index in May, passing through the decline in consumer confidence issued by the University of Michigan and the rise in Challenger reports of job cuts in May, all these numbers may mean that we may not see a strong rise in employment numbers as expected. The current pace of the Corona virus outbreak in the United States of America supports the improvement in the employment sector in May, but the numbers that will be issued with the employment statement, led by the weather rate, remain important in the movements of the markets and the US dollar during the remainder of the week and next week. Canadian labor market data will also be announced at the same time with the US data, where expectations indicate that the Canadian economy may lose about 23 thousand jobs in May and that the unemployment rate will rise to 8.2% compared to 8.1% in April. The US dollar has risen since the beginning of the week by more than 0.50% and is trading this Friday morning at levels of 90.51, amid anticipation of the employment data, which if it comes with a better result than expected, we may witness the continuation of the US dollar’s ​​rise, and vice versa. The numbers are negative, we may witness a return of the dollar index to below the 90 levels. .

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