After an eventful week, sentiment among market participants has evidently improved. Perceived safe-haven assets like gold, Japanese yen and Swiss franc, have all come under pressure in recent days, while the global stock indices have bounced back after last week’s falls. Granted, we are not totally out of the woods yet, and equity prices remain overstretched on historical basis, but there’s definitely fewer reasons for investors to fret over than at the start of the week. After all, there’s now urgency from North Korea to denuclearize and Donald Trump has agreed to meet Kim Jong-un face-to-face by May.
Nonfarm payroll is due at 7:30 a.m. Central and will provide the most important read on wages ever. Yes, ever, but each successive read this year will be in the same ballpark or more important. Wages, wages, wages. Today is about just that as Nonfarm Payroll is due at 7:30 a.m. Central. the 10-year has consolidated into an extremely tight range leading up to today’s report. Expectations for Average Hourly Earnings officially come in at 0.2% and annualized to hold steady at 2.9%.
Apparently, President Donald Trump knows what a dictator wants. They want to be treated rough. Instead of being coddled and respected, they want to make sure that the guy they are dealing with is as tough as he is, and only then can you gain his respect, or maybe his fear. Instead of starting a nuclear war, President Trump’s tough talk and harsh sanctions has brought Kim Jong-un to the negotiating table.
After the ECB’s dovish press conference the euro fell across the board, even against the Canadian dollar. The commodity currency has taken a beating of its own in recent weeks amid fears over protectionist U.S. policies, renewed weakness in oil prices and soft domestic data.
Wednesday's trading session was overall bullish, as the main stock market indexes closed between -0.3% and +0.3% vs. their Tuesday's closing prices following much lower opening in reaction to Gary Cohn's resignation's news.
All things considered, the Euro reacted in a very quiet manner to today’s news. A strong read on private ADP Payrolls along with better than expected Nonfarm Productivity and Unit Labor Costs supported the dollar this morning.