US Dollar Slips From 4-Month High Awaiting NFP
The dollar traded in a narrow range against the euro on the eve of today's publication of key data on the US labor market. According to forecasts, the number of employed increased by 194 thousand in April, the unemployment rate decreased to 4.0% from 4.1% in March, and the average hourly earnings increased by 0.2%.
The Japanese yen remains one of the strongest in a week. The Australian dollar reacts well to the money application and is significantly strengthened. In the latest statement of the RBA on monetary policy, economic forecasts have largely remained unchanged. According to forecasts, the average GDP growth will be 3.00% in 2018, and 3.25% in 2019. It is also expected, that CPI inflation will grow to 2.25% at the end of 2018 and will remain there until June 2020. But still, the RBA raised unemployment rate forecast to 5.50% in June 2018 and December 2018, up from 5.25%.
The growth of business activity in the services sector of China has slightly improved in April, but remained weaker than at the beginning of the year. The index of business activity of China's service sector from Caixin/Markit increased to 52.9 in April from 52.3 in March. Economists had expected a weaker indicator at 52.2.
US-China trade talks continue. US Treasury Secretary Steven Mnuchin said there were “very good conversations”, but he didn’t make any further comments. The official China Daily newspaper said in an editorial that acceptable agreements can be reached if both sides have realistic expectations of their give and take.