FINWIRES · TerminalLIVE
FINWIRES

US Dollar Rises Early Monday, Focus on May Employment Data This Week

By

The US dollar rose against its major trading partners early Monday ahead of a busy week of economic data releases leading up to the May employment report on Friday.

Monday's schedule includes S&P Global manufacturing data for May at 9:45 am ET, construction spending data for April, and the ISM's manufacturing reading for May, both at 10:00 am ET, and an update to the Atlanta Federal Reserve's GDP nowcast estimate around midday.

Weekly Redbook same-store sales, consumer sentiment data for June, and job opening data for April are due to be released on Tuesday.

Wednesday's highlights include ADP private payrolls data for May, services conditions data for May, and the Fed's Beige Book report, as well as weekly MBA mortgage data and oil stocks.

Challenger layoffs data for May, weekly jobless claims, natural gas stocks, and revised productivity data for Q1 are due to be released on Thursday.

After the May employment report, an update to the St. Louis Fed's GDP nowcast estimate and consumer credit data for April are due on Friday.

A quick summary of foreign exchange activity heading into Monday:

EUR/USD fell to 1.1644 from 1.1665 at the Friday US close but was above a level of 1.1642 at the same time Friday morning. Eurozone manufacturing PMI declined in May but still indicates growth, while the Eurozone unemployment rate held steady in April, according to data released earlier Monday. The next European Central Bank meeting is scheduled for June 11.

GBP/USD fell to 1.3464 from 1.3468 at the Friday US close but was above a level of 1.3417 at the same time Friday morning. The UK manufacturing PMI rose in May, while home price inflation declined in May, according to data released earlier Monday. The next Bank of England meeting is scheduled for June 18.

USD/JPY rose to 159.4662 from 159.2487 at the Friday US close and 159.2885 at the same time Friday morning. Japanese manufacturing PMI declined in May but still pointed to growth, according to data released overnight. The next Bank of Japan meeting is scheduled for June 15-16.

USD/CAD rose to 1.3828 from 1.3787 at the Friday US close and 1.3813 at the same time Friday morning. Canadian manufacturing PMI for May is due to be released at 9:30 am ET, followed by an appearance by Bank of Canada Senior Deputy Governor Carolyn Rogers at 12:00 pm ET. The next Bank of Canada meeting is scheduled for June 10.

Related Articles

International

Market Chatter: Japan Spent Record 11.73 Trillion Yen on Currency Intervention Over the Past Month

Japan deployed a record 11.73 trillion yen in market intervention over the four weeks through May 27 to prop up the yen after the currency tumbled past 160 per dollar, Bloomberg News reported on Saturday, citing Finance Ministry data.The total exceeded market expectations based on central bank flow data, and marked the government's first such action since 2024, said the news wire.A strategist at SMBC Nikko Securities noted that even with undisclosed action, the yen's continued weakness may strengthen arguments about the limitations of unilateral intervention, the publication said.More precise details on the timing and size of each operation are expected in early August when the ministry releases second-quarter figures, the report said.Next week's reserves data could reveal whether Japan sold US Treasury holdings to fund the purchases, a move that might concern US Treasury Secretary Scott Bessent due to potential upward pressure on American yields, it added.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Nikkei 225
International

Westpac Banking Says Customers Spend AU$5.6 Million Per Month on Average on AI Tools

Westpac Banking (ASX:WBC, NZE:WBC) said its customers are spending a total average of AU$5.6 million per month on artificial intelligence (AI) tools, citing card transactions data, according to a Monday statement.Individually, customers are spending an average of AU$37 per month on AI subscriptions as of March. Overall, customers spend around AU$6.7 billion annually on subscriptions.Over 150,000 retail customers are paying for at least one AI subscription each month as of March, up from 11,000 customers who were paying for AI services as of March 2023. This represents an increase of 1,284%.

ASX:WBCNZE:WBC
International

South Korea Logs Record Trade Surplus in May as Export Growth Hits Four-Decade High

South Korea recorded a trade surplus of $26.9 billion in May, a new all-time high, and marking the third straight month of more than $20 billion in trade surplus, the Ministry of Trade, Industry and Energy said in a Monday release.It came as exports increased 53.2% to $87.8 billion from the year-ago period, the sharpest pace of growth since 1984. Imports rose 20.8% to $60.8 billion.Semiconductor exports surged 169.4% to a record $37.16 billion, while non-semiconductor exports increased by 16%. Rising memory chip prices amid increased capital spending by major U.S. technology companies pushed chip exports higher, the release said.

^KOSDAQKOSPI