Canada unexpectedly added 35.9K jobs in April amid forecasts for a 50K drop in employment, while the jobless rate held steady at the seven-year high of 8.0%. The report by Statistics Canada showed self-employment surged 37K during the month, and the breakdown of the release showed full-time positions increased 39.4K from March.
Fundamental Headlines
• Fed Sees Banks Losing Up to $599 Billion – Wall Street Journal
• Chairman of N.Y. Fed Quits – Wall Street Journal
• AIG blames market disruption for loss – Financial Times
• Geithner Bets U.S. Can Avoid Falling Into Japan Trap Through Bank Earnings – Bloomberg
• Ford May Tap U.S. Energy Department Loans to Shift SUV Plant to Small Cars – Bloomberg
USDCAD – Canada unexpectedly added 35.9K jobs in April amid forecasts for a 50K drop in employment, while the jobless rate held steady at the seven-year high of 8.0%. The report by Statistics Canada showed self-employment surged 37K during the month, and the breakdown of the release showed full-time positions increased 39.4K from March, while part-time opportunities slipped 3.6K in April. The data suggests that economic conditions are beginning to stabilize as the Bank of Canada takes unprecedented steps to shore up the world’s eighth largest economy however, as the region faces its first recession since 1992, the fundamental outlook remains bleak as the U.S., Canada’s biggest trading partner, faces its worst downturn in over half a century. Discuss the topic and your trade ideas in the USD/CAD Forum.
GBPUSD – U.K. PPI rose the most in ten months as the output prices increased 0.6% in April, which beat forecast for a 0.2% increase, while the headline reading slipped to 1.2% from a revised reading of 2.0% in March, which is the lowest level of price growth in five years. At the same time, the core rate fell to 2.4% from a revised reading of 3.2%, while input price dropped 1.0% during the month, with the annual rate falling 5.0% from the previous year. The Office for National Statistics said that the rise was contributed by higher oil prices paired with higher taxes on tobacco and alcohol however, the drop in input prices reinforces the BoE’s expectations for inflation to fall below the 2% target as the region faces its worst economic downturn in half a century. Discuss the topic and your trade ideas in the GBP/USD Forum.
EURUSD – Industrial outputs in Germany held flat in March to end a six-month slump amid expectations for a 1.3% drop. On the other hand, last month’s reading was revised down to -3.4% from an initial reading of -2.9%, while the annual rate of production slipped 20.4% from the previous year, which beat forecasts for a 20.9% decline. Meanwhile, Germany exports unexpectedly increased for the first time in six months as sales abroad rose 0.7% in March, while imports rose 0.8% during the month amid expectation for a 0.9% drop. As a result, the trade surplus widened to EUR 11.3B from a revised reading of EUR 8.6B in February, and the data spurred hopes that the worst of the economic downturn has passed following the rebound in business sentiment earlier this month. Discuss the topic and your trade ideas in the EUR/USD Forum.
CHFUSD – Unemployment in Switzerland rose to its highest level since July 2006 as the seasonally adjusted jobless rate increased to 3.3% from 3.3% in March, and the data continues to reinforce a weakening outlook for growth and inflation as the region faces its worst economic downturn in over a quarter century. The downturn in global trade paired with instability in the financial system has certainly dragged on the Swiss economy, and the fundamental outlook remains bleak as policymakers continue to see a risk for deflation. For more news and resources, visit the new Swiss franc Currency Room.
