Historic jobs report proves positive for......>

FOREX: Historic jobs report proves positive for risk

- April's Nonfarm Payrolls report was ground-breaking in several ways - the

change in payrolls headline showed the US lost over 20mln jobs over the month,

with total employment and labor force participation cratering as the lockdown

effect rippled through the US. Countering this, average hourly earnings surged

sharply as the job losses were disproportionately suffered by the lower-paid.

Markets took a generally risk-on tone post-release, pressuring JPY to the bottom

of the G10 pile. USD also traded poorly, favouring AUD and NZD.

- Mimicking the price action seen on Thursday, short-end US yields folded lower

to hit new alltime lows of 0.1032%, sapping the greenback and helping the likes

of EUR/USD and GBP/USD close broadly flat on the week. UK and French public

holidays did little to prop up volumes and liquidity, prompting some outsized

moves in currency markets.

- In the coming week, RBNZ and Banxico rate decisions are due as well as

numerous speakers from BoE, ECB and Fed. Further easing of COVID-19 lockdown

restrictions are expected across Europe, the US and UK.