The March US jobs report comes out later today marking the dawn of the post-outbreak labor market and a clearer picture of the coronavirus economic hit.
The coronavirus is deteriorating in the United States where weekly jobless claims doubled to 6.6 million last week. March US jobs figures are due on Friday, although the cut-off period for the survey is March 12 so it will not reflect the impact of COVID-19.
The U.S. economy likely shed jobs in March, abruptly ending a historic 113 straight months of employment growth. Nonfarm payrolls probably decreased by 100,000 jobs last month, snapping a record streak of employment gains since October 2010. Payrolls increased by 273,000 jobs in February.
Wage growth is expected to have remained steady in March, but that is all in the rear view mirror. Average hourly earnings are forecast rising 0.2% in March after increasing 0.3% in February. That probably kept the annual increase in wages at 3.0%. The average workweek likely fell to 34.1 hours last month from 34.4 hours in February.
The United States has the highest number of confirmed cases of COVID-19 with more than 214,000 people infected. Nearly 5,000 people in the country have died from the illness.
As lockdowns continue, the economic impact of the epidemic is becoming more marked. Purchasing managers’ indexes across the euro zone and Britain on Friday showing a slump in business activity.
START TRADINGForex – March US jobs report ends 113 months of grow
The Japanese yen, Swiss franc, sterling and the Australian and New Zealand dollars all also lost ground as the dollar strengthened across the board.
The dollar resumed its climb against major currencies on Friday as investors took refuge in safety bids. The greenback index is on course for a near 2.5% gain over the week.
The dollar was up 0.5% against the euro on Friday at $1.8060, putting it on course for a 3% gain over the week. It was also up 0.5% against a basket of currencies.
Brief gains on Thursday in oil-exposed currencies such as Canadian dollar on the back of a rallying oil price mostly evaporated with some retracement of oil’s gains amid doubts around supply cuts.
Indecision among euro zone governments about a rescue package for the region’s hobbled economies has weakened the euro in recent days.
The pound fell 1% on Friday after a record slump among Britain’s services and manufacturing firms deepened in late March.
Sterling was last down 1% at $1.2263, its weakest level since Tuesday. Against the euro, it fell 0.4% to 87.95 pence.
Oil prices which have been at historic lows, spiked as President Trump suggested massive production cuts. Further, Saudi Arabia called for an emergency OPEC meeting to stabilize the market.
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Sources: Reuters, Investing, CNN money