Non Farm Payrolls Brexit Negotiations

Speaking while on a visit to Washington DC, Democratic Unionist Party (DUP) Leader Sir Jeffrey Donaldson shares his initial thoughts on the Windsor Framework proposals for administering the border between the United Kingdom and European Union.

Pandemic period gains for stock markets and the resulting windfalls for investors have been cited by Federal Reserve (Fed) Chairman Jerome Powell for a sharp increase in retirements that is lifting pay growth for workers but also contributing to inflation and helping to drive interest rates higher. 

The Japanese Yen tumbled across the board ahead of the weekend after show stopping employment and wage figures appeared to bait an already hawkish Federal Reserve (Fed) and shocked U.S. government bond yields back into life.

The Euro narrowly avoided a brush with the psychologically significant level of parity against the Dollar in the final session of the week but was last seen struggling to fend off an advancing greenback after U.S. non-farm payrolls figures surprised on the upside of market expectations for June.

The Pound to Dollar exchange rate rebounded from earlier losses late this week but was hampered again in thin holiday trade on Friday after the May non-farm payrolls and Services PMI reports offered an incitement to a Federal Reserve (Fed) that appeared to become more hawkish in recent days. 

The U.S. Dollar Index stalled as other currencies in the barometer found support following a non-farm payrolls report that showed the employment recovery continuing while wage growth moderated in April with potentially dampening implications for the medium-term inflation outlook.

The Japanese Yen tumbled during the final session of the week when the Dollar rose sharply alongside interest rate differentials and as stock markets advanced broadly amid an evident improvement in investor risk appetite, leading some to reset their sights on the 125 level of USD/JPY.

\The U.S. Dollar retreated against the Euro, Pound and other major currencies following the release of a softer-than-expected set of labour market statistics out of the United States.

The Dollar holds gains ahead of the Friday release of U.S. jobs data which is likely to be the most important economic reading of some time, with analysts warning that disappointment could lead to a sizeable retreat by the U.S. currency.

The Dollar remained an outperformer among major currencies on Friday although its strength was abating after February non-farm payrolls report revealed a sharp increase in new jobs last month, around the same time as trade balance data showed U.S. imports growing faster than exports in the New Year.

The Dollar Index reversed lower Friday while other currencies were lifted by default when non-farm payrolls figures showed the U.S. job market cracking around year-end and after a period when coronavirus containment efforts were again closing down parts of the world's largest economy. 

The Pound-to-Euro exchange rate popped higher and then fizzled on Wednesday following reports that a Brexit trade agreement has been reached between Britain and the European Union, with the tepid response potentially reflecting uncertainties about the agreements' contents and its path toward ratification. 

The U.S.labour market defied expectations on Friday when Bureau of Labor Statistics data revealed further job gains that helped push the unemployment rate a full percentage point lower in October, but with political uncertainty rising and the coronavirus resurgent, the outlook has grown murkier already in November.

The release of U.S. non-farm payroll data is the highlight of the day with foreign exchange markets likely to pay particular attention to this month's reading to get a steer as to whether the recovery continued to fade in July or found a fresh wind.

The British Pound starts the new week registering losses against the Euro, Australian and New Zealand Dollars but is higher against the U.S Dollar, Yen and Franc courtesy of a rally in global stocks and commodity prices.

Dollar losses eased Thursday after the U.S. non-farm payrolls report again surpassed market expectations, with job gains stoking already upbeat sentiment in a buoyant market for risk assets but curtailing an earlier increases by the Pound, Euro and other currencies. 

Downside pressures on the British Pound has eased over the past 12 hours with confirmation that the Labour and the Government have not in fact broken down and the two sides remain in negotiations to forge a cross-party Brexit deal.

The British Pound is trading lower in mid-week trade with markets finding little positive in the latest updates concerning the status of cross-party Brexit talks which are now not expected to deliver a breakthrough this week.

The British Pound is seen defending recent advances made against the Euro and U.S. Dollar amidst a renewed sense of optimism amongst currency market traders that this week there could finally be a material breakthrough in the entrenched Brexit impasse.

The Dollar pared earlier gains Friday after a blowout nonfarm payrolls number for April failed to distract investors from a 'mixed message' contained in the detail of the employment report, which took some of the shine off the data for the market.