Weekly Market Update 2 Apr – Stronger Employment and PMI data leads to a stronger USD
Weekly Market Update 2 Apr 2021 – Stronger Employment and PMI data leads to a stronger USD
1. The March Non-Farm Payrolls surged to almost double forecasted levels, coupled with the upbeat PMI manufacturing data, the dollar gathered strength against its major rivals. President Biden announced a $2.3trillion infrastructure package that will reshape the country’s economy and energy landscape, boosting the renewables and clean energy sectors and potentially adding millions of jobs if the plan is passed.
2. The Euro reached its lowest level in four months against the dollar in March, though briefly rebounding on the back of positive German labour data. With fresh lockdown and restrictions kicking in in France and Germany expected to follow suit, the economic contraction in the first quarter is expected to spill over to the second quarter, extending bearish sentiment on the currency.
3. The GBP made modest gains in the last few days of the quarter, as Q4 GDP data came in better than expected. The British government has also announced major reliefs and grants for Britons and the local industries. The Sterling maintains its upside momentum with the gradual easing of pandemic restrictions and continued vaccine rollout.