Friday, June 5, 2020 will usher in the release of yet another edition of the Non-Farm Payrolls report to the markets. The market expectation is for the US economy to have lost 8000K jobs (down from -20500K registered a month earlier), with an increase in the unemployment rate from 14.7% registered previously to 19.5%.
So far, the US markets and the US Dollar have ignored negative employment data in the last two months, as markets appear to have priced in all the negatives in advance. Emphasis has all been on the stimulus packages rolled out by the Fed and other central banks, which acted very quickly to contain the impact of the coronavirus contagion on the various economies. However, this month’s NFP report is coming at a time when the USD is taking a beating in the financial markets. The US markets are also seeing a bit of a stall and are finding it hard to stage the resistance breaks required to retake the 2020 highs.