USD ended the week under pressure as Friday’s payrolls showed disappointingly low jobs growth. Economists highlight a number of caveats – the two hardest hit sectors were leisure & hospitality and construction (both of which may have felt the effect of bad weather), while people not at work due to weather were 50% above the 3yr average for March. Nevertheless there’s no doubt it is a bad report and makes it much less likely the Fed will be ready to go by/USD hit 1.1028 – almost exactly the predicted level , though then retraced to end the day back below 1.10. USD/JPY hit 118.72 before recouping 119. “Our technical strategists still look for another move lower in EUR/USD (support at 1.0932) while fundamentally we think these are good levels to sell (resistance at 1.1098 and 1.1270)”, Said RBC Capital Markets in a report on MondayIndia services/comp PMI and Japan’s leading indicator are out but most of the data/event action comes after the HK close – NY Fed President Dudley speaks (and is bound to be asked for his reaction to the weak payrolls) while in Canada, the Business Outlook Survey is key to the BoC’s next step.
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