Daily Market Commentary 4th June 2021

European Services and Composite PMI data was stronger than expected, as the economies re-open and fears over the virus are overcome. In the US markets await the outcome of the all-important Non Farm Payroll number, following the shocking number the previous month, markets remain on tender hooks. The ADP Jobs report was much better than expected, with the private sector adding 978,000 jobs, smashing expectations. If this translates into the ‘NFP’, then markets will breathe a sigh of relief. The goods news on the labour market front spiked the US Dollar and inflation fears, once again. The EUR plunged to 1.2120, while the GBP slipped to 1.4100, despite stronger PMI data.

Japanese, Chinese and Australian Services/Composite PMI data was softer than expected, but only after significant recent gains. The markets look towards the NFP number. Australian trade numbers spiked after Exports jumped 3%, while imports contracted 3%. The jump in the reserve hit the commodity currencies hard, with the AUD crashing to 0.7650, while the NZD falling to 0.7140.

Expect big market action tomorrow following the release of the US Employment data.