*German Economy Suffered Worst Crash, Now Beginning To Bottom Out: Ifw Kiel

Trading 08 mai 2020 Commentaire »

German Economy Suffered Worst Crash, Now Beginning To Bottom Out: Ifw Kiel


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*German FinMin Found ECB's Covid19 Asset Purchase Scheme 'Proportional': Spiegel

Trading 08 mai 2020 Commentaire »

German FinMin Found ECB's Covid19 Asset Purchase Scheme 'Proportional': Spiegel


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Dollar Recoups Early Losses After Nonfarm Payrolls Data

Trading 08 mai 2020 Commentaire »

The U.S. dollar reclaimed some lost ground against its key counterparts in the European session on Friday, as better-than-expected employment data soothed some of the worries about the labor market hurt by the coronavirus pandemic.

Data from the Labor Department showed that non-farm employment plummeted by 20.5 million jobs in April after tumbling by a revised 870,000 jobs in March.

The steep drop in employment was not as bad as feared, however, as economists had expected employment to plunge by 22.0 million jobs compared to the loss of 701,000 jobs originally reported for the previous month.

The unemployment rate climbed to 14.7 percent in April from 4.4 percent in March. Economists had expected the unemployment to spike to 14.0 percent.

The dollar fell against its most major counterparts in the Asian session as trade war fears receded after US and Chinese trade officials had held a phone call and pledged to co-operate to implement the Phase 1 trade deal. After a sharp rise in weekly initial jobless claims, investors have started to price in the chance of the Fed cutting official interest rates below zero in early 2021.

The greenback bounced off to 1.2358 against the pound, from a low of 1.2408 set at 10:30 pm ET. The greenback is poised to find resistance around the 1.21 level.

The greenback was up against the yen, at a 3-day high of 106.72. The pair was worth 106.24 when it ended deals on Thursday. The greenback is seen finding resistance around the 108.00 mark.

Survey from Jibun Bank showed that Japan services sector continued to contract in April, and at a much more severe rate, with a record-low services PMI score of 21.5.

That's down sharply from 33.8 in March and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

After falling to a 3-day low of 0.9702 at 8:15 am ET, the greenback recovered to 0.9728 against the franc. Next key resistance for the greenback is likely seen around the 0.99 level.

The greenback rose back to 1.0825 against the euro, reversing from a low of 1.0855 seen at 10:30 pm ET. Should the greenback strengthens further, it is likely to test resistance around the 1.06 region.

Data from Destatis showed that German exports declined the most on record in March as foreign demand was dampened by coronavirus, or Covid-19, pandemic.

Exports fell by seasonally adjusted 11.8 percent month-on-month, in contrast to February's 1.2 percent rise.

The greenback reversed from its early 8-day lows of 0.6142 against the kiwi and 0.6548 against the aussie and was trading at 0.6113 and 0.6505, respectively. The greenback is likely to face resistance around 0.585 against the kiwi and 0.60 against the aussie.

The greenback staged a modest recovery against the loonie, with the pair trading at 1.3964. This followed an 8-day low of 1.3925 logged in the Asian session. Further uptrend may take the greenback to a resistance around the 1.42 area.


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U.S. Wholesale Inventories Slump Slightly Less Than Expected In March

Trading 08 mai 2020 Commentaire »

A report released by the Commerce Department on Friday showed wholesale inventories in the U.S. decreased by slightly less than expected in the month of March.

The Commerce Department said wholesale inventories slumped by 0.8 percent in March after falling by 0.7 percent in February. Economists had expected inventories to tumble by 1.0 percent.

Inventories of non-durable goods led the way lower, plunging by 2.7 percent, although the nosedive was partly offset by a 0.5 percent increase in inventories of durable goods.

Meanwhile, the report said wholesale sales plummeted by 5.2 percent in March after sliding by 0.7 percent in the previous month.

Sales of durable and non-durable goods both showed substantial decreases, tumbling by 5.5 percent and 4.9 percent, respectively.

With sales falling by much more than inventories, the inventories/sales ratio for merchant wholesalers jumped to 1.37 in March from 1.31 in February.


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*U.S. Wholesale Inventories Drop 0.8% In March

Trading 08 mai 2020 Commentaire »

U.S. Wholesale Inventories Drop 0.8% In March


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U.S. Employment Nosedives By Record 20.5 Million Jobs In April

Trading 08 mai 2020 Commentaire »

Reflecting the effects of the coronavirus pandemic and efforts to contain it, the Labor Department released a report on Friday showing a record nosedive in employment in the U.S. in the month of April.

The report said non-farm payroll employment plummeted by 20.5 million jobs in April after tumbling by a revised 870,000 jobs in March.

The steep drop in employment was not as bad as feared, however, as economists had expected employment to plunge by 22.0 million jobs compared to the loss of 701,000 jobs originally reported for the previous month.

Nonetheless, the Labor Department said the unemployment still skyrocketed to a post-World War II record high of 14.7 percent in April from 4.4 percent in March. Economists had expected the unemployment to spike to 14.0 percent.

Paul Ashworth, Chief U.S. Economist at Capital Economics, said the unemployment rate would have been even higher, but the Bureau of Labor Statistics is still having problems with misclassifying absent workers who should have been recorded as on temporary layoff.

"Without that distortion, the unemployment rate would have been close to 20% last month," Ashworth said.

The record drop in employment reflected sharp jobless losses in all major industry sectors, with particularly heavy job losses in leisure and hospitality.

Employment in the leisure and hospitality sector plummeted by nearly 7.7 million jobs, while employment in the education and health services and retail sectors also plunged by 2.5 million jobs and 2.1 million jobs, respectively.

The jump in the unemployment rate came as the household survey measure of employment plummeted by 22.4 million persons, while the labor force shrank by 6.4 million persons.

Meanwhile, the report said average hourly employee earnings surged up $1.34 or 4.7 percent to $30.01 in April. Annual wage growth soared to 7.9 percent in April from 3.3 percent in March.

The Labor Department noted the spike in average hourly earnings largely reflect the substantial job loss among lower-paid workers.

"Overall, this report lays bare the full extent of the human tragedy stemming from the pandemic," Ashworth said.

He added, "While we are hopeful many will get back to work in the coming months, there will be severe scarring effects on the labor market for years to come."


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German Companies See Decline In Sales In 2020 Due To Covid-19 Pandemic: DIHK

Trading 08 mai 2020 Commentaire »

Most of the German companies expect decline in sales in the whole year of 2020 as coronavirus related crisis is expected to last longer, a survey from the German Chamber of Commerce and Industry, or DIHK, showed Friday.

About 80 percent of companies across industry, construction and service sectors expect a decline in sales for the whole year. One in four forecast a 50 percent reduction in sales.

There is a long way to go before economy recovers, DIHK President Eric Schweitzer said.

According to survey, the situation of the companies remains very critical. Around 60 percent of companies continue to suffer from lower demand and 43 percent from canceled orders.

The survey was based on the response of more than 10,000 companies and half of them were either completely or partially shutdown.

With the easing of restrictions on lockdown at the end of April, only one in four of the surveyed companies stated operation. The survey revealed that coronavirus pandemic has affected all industries in all sizes.


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U.S. Employment Plunges Less Than Expected In April

Trading 08 mai 2020 Commentaire »

Reflecting the effects of the coronavirus pandemic and efforts to contain it, the Labor Department released a report on Friday showing a record nosedive in employment in the U.S. in the month of April.

The report said non-farm employment plummeted by 20.5 million jobs in April after tumbling by a revised 870,000 jobs in March.

The steep drop in employment was not as bad as feared, however, as economists had expected employment to plunge by 22.0 million jobs compared to the loss of 701,000 jobs originally reported for the previous month.

Nonetheless, the Labor Department said the unemployment still skyrocketed to a post-World War II record high of 14.7 percent in April from 4.4 percent in March. Economists had expected the unemployment to spike to 14.0 percent.


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*U.S. Dollar Appreciates To 106.56 Against Yen After Jobs Data

Trading 08 mai 2020 Commentaire »

U.S. Dollar Appreciates To 106.56 Against Yen After Jobs Data


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Dollar Rises Following U.S. Jobs Data

Trading 08 mai 2020 Commentaire »

After the release of U.S. jobs data for April at 8:30 am ET Friday, the greenback advanced against its major counterparts.

The greenback was trading at 106.54 against the yen, 0.9718 against the franc, 1.2383 against the pound and 1.0838 against the euro around 8:34 am ET.


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