Dollar struggles after poor US employment figures

It was a bad end to the first week of April for USA with initial jobless claims rising on Thursday and the Non-Farm Payroll figure coming in at 88,000 vs consensus estimates of 200,000 on Friday.Dollar struggles after poor US employment figuresThis singlehandily hit the stock markets, as a sign that stability has still not returned to America, and also weakened US Dollar to a low of 1.5362 on GBPvUSD, EURvUSD rose above 1.30 for the first time in over 3 weeks with GBPvEUR remaining relatively unchanged in the 1.17’s.

In the UK after last week’s better than expected Services PMI growth we have the UK Trade Balance on Tuesday that will show a larger deficit, as expected from George Osborne’s Spring Budget although Manufacturing and Industrial production is expected to show minimal growth versus February’s contractions.

David Cameron is travelling around the EU (Madrid, Paris and Berlin) to discuss a trade orientated plan for the 27 Member State this week with reformed spending controls to increase the attractiveness of the area and try to keep the European coffers under control.

In the US the earnings season gets underway this week with 1 Quarter figures being drip fed to the markets throughout the week.

Wednesday, sees the release of the FOMC Meeting Minutes from last month’s meeting which will give an insight into the panel’s thoughts on the US recovery and perhaps an insight into the end of their monetary stimulus.

Thursday will see initial jobless claims revision from last week to sit around 365k. Friday, US Retail Sales are expected to show minimal growth of 0.1% versus last month’s unexpected 1.1% figure.

In euroland– a quiet week ahead after Mario Draghi weakened the single currency last week on more negative, dovish notes on the outlook for the eurozone.

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