Get Ready For The US Non-Farm Payrolls This Week
The Euro rose versus the US Dollar last week, driven by increased confidence in the global economy.
The release of the Eurozone flash CPI data for May fell from 0.3% to 0.1% last week which is a four-year low.
Thursday initial jobless claims data showed that more than two million Americans filed for unemployment benefits for the first time last week.
In the upcoming week, pay attention to the US Jobs Report. The US Non-Farm Payrolls may give the market the first grim picture of a coronavirus-hit economy.
May US Nonfarm Payrolls are expected to drop -8.250K. The Unemployment Rate is expected to rise to 19.7% from 14.7%. Average hourly earnings will also be significant and are expected to ease to 1.0% from 4.7%. This may show the coronavirus negative impact on the American economy.
Moreover, the economic calendar will bring an update on the health of the U.S. economy, with reports on Factory Orders, Initial Jobless Claims, and ISM Non-Manufacturing PMI as well as Manufacturing PMI.
In addition to the US data, the European Central Bank will announce its rate decision and forward guidance on Thursday. We might see a response from ECB for the economic risk posed by the coronavirus threat.
In the last meeting, ECB announced a new series of Non-targeted Pandemic Emergency LTRO, which will consist of 7 new refinancing operations from May 2020.
In this week meeting, The ECB is widely expected to announce a 500 billion-euro ($555 billion) increase to its Pandemic Emergency Purchase Program and extend is duration until mid-2021