NFP REPORT APRIL 2020 – US DOLLAR, GOLD PRICE & DOW JONES INDEX
- Nonfarm payrolls (NFP[1]) for April 2020 just crossed the wires and showed the US unemployment rate at a gut-wrenching 14.7%
- US Dollar[2] and gold price[3] action responded positively on the back of heightened safe-haven demand
- Dow Jones[4] Index and broader stock market could unwind recent gains as companies continue slashing jobs amid the coronavirus recession
US NFP data for April 2020 highlights the paralyzing impact the coronavirus lockdown has had on the global economy, and underscores the likely unavoidable[5] recession caused by the pandemic. The monthly net change in nonfarm payrolls just crossed the wires at -20.5 million while the unemployment rate spiked to 14.7% for the repored period.
NONFARM PAYROLLS & US UNEMPLOYMENT RATE - APRIL 2020
Markets were little changed in response to the eye-popping economic data[6] considering the terrible NFP report was largely anticipated by traders. This is considering weekly initial jobless claims data has widely indicated the monumental collapse in employment and is considered a 'leading' variable relative to NFP data. Nevertheless, April 2020 nonfarm payrolls data topped market expectations.
US DOLLAR - DXY INDEX PRICE CHART: 1-MINUTE TIME FRAME (08 MAY 2020 INTRADAY)
The US Dollar, measured via the DXY Index[7], popped modestly higher to trade flat on the day. US Dollar strength stands out most when observing spot USD/JPY[8] price action with the Dollar-Yen[9] up more than 30-pips since the NFP report crossed the wires.
GOLD PRICE CHART: 1-MINUTE TIME FRAME (08 MAY 2020 INTRADAY)
Gold prices ticked marginally lower following the nonfarm payrolls data, but the precious
