The Dollar struggled yesterday afternoon as figures showed job creation skidded to a near-halt in May in another sign that economic momentum is slowing. Companies added just 27,000 new positions during the month, according to a report Wednesday 05/06 from payroll processing firm ADP and Moody’s Analytics. Companies with fewer than 50 employees were hit the hardest, with job losses reported at 52,000, and in the goods-producing sector, slightly lower at 43,000. Poor May labour growth comes after a powerful surge in April of 271,000, however following an overly-strong April, May was a disappointing result.
The disappointing report comes two days before the more closely watched official government reading on Non-Farm payrolls and comes at a sensitive time for the economy. Many analysts now expect a slowdown through the next two quarters and expect at least two and possibly three interest rate cuts this year.
10:00 – GBP: BOE Gov Carney Speaks at the Institute of International Finance Spring Meeting in Tokyo
12:45 – EUR: Monetary Policy Statement
13:30 – EUR: ECB Press Conference