The two main macro releases of the day will be UK PMI services at 9:30am (London), and the US employment report, Non-Farm Payrolls (NFP). The recent economic releases from the UK have shown signs of potential growth, and a better than expected services PMI this morning, is likely to put a bid into sterling in the FX markets.
It is the first Friday of the month, which means that it is ‘Non-Farm Friday.’ The US employment report will be released at 13:30pm (London)and as always has a wide expectations from analysts, the consensus of economists surveyed by Bloomberg being +140K jobs. Aprils release was a dire print of 88K, reigniting the expectation for further and increased quantitative easing.
Some analysts have revised their forecasts lower following a disappointing ADP of just 119K new private payrolls in April. The forecasts can be widely inaccurate and there is a likelihood of over the announcement for there to be significant volatility. The Abshire-Smith trading desk is expecting a print slightly below the median forecast of 130K, but there is a concern that there could be a significant revision to last month’s print.
If you are on Twitter follow the build up by searching the #NFPGuesses, though these are exactly what the hashtag says, guesses.
IMF chief Christine Lagarde said Thursday she saw little alternative to the agenda of austerity being pushed across Europe, after massive demonstrations in several countries demanded an end to the policies – AFP
Gold traders are the most bearish in three years after investors sold a record amount of metal held in exchange-traded products and prices tumbled in a bear market - Bloomberg
Japanese markets were closed over night for Constitutional Memorial day
HSBC’s Paul Bloxham:“A close call as housing market pauses, but RBA likely to hold cash rate next week”
On Thursday the Yuan, climbed to its strongest level against the US dollar since its 1994 devaluation
Mark Carney’s successor as the Governor of the Bank of Canada has been announced as Stephen Poloz starting on June the 3rd
BNP Paribas Q1 profit fell 45% - Bloomberg
S&P affirms Singapore’s credit rating at ‘AAA/A-1+’; outlook stable - Dow Jones
The Indian central bank the RBI, has cut interest rates by 25bps, for the third consecutive meeting, in an attempt to reignite growth