The market sentiment is mixed. Let’s look at most interesting movements on the market today.
Strong American job surge is expected in May
In May, American job surge was still sturdy, which is a further sign of an acceleration in economic activity, which would effectively seal the case for an interest rate soar this month notwithstanding sluggish wage revenues.
The previous month, nonfarm payrolls soared by 185,000 jobs, according to a Reuters poll of financial experts, having soared 211,000 in April. May's projected soar would be in line with 185,000 average monthly job surge this year.
The unemployment rate is predicted intact at a 10-year minimum of 4.4%. In 2017, it has edged down four-tenths of a percentage point. On Friday, the Labor Department will issue its closely watched employment report, which is less than two weeks before the Fed’s June 13-14 policy gathering.
This month, American financial markets have priced in nearly a 25 basis points soar in the Fed's benchmark overnight interest rate, as CME FedWatch informed.
In March, the Fed lifted interest rates by 25 basis points. Reports on consumer spending as well as manufacturing suggest that the US economy managed to gain speed early during the second quarter after GDP added at a tepid 1.2% annualized rate in the beginning of the year.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.