Non-farm payrolls mixed, U.S. inflation data coming this week

By    9 May,2022

Last Friday's U.S. non-farm payrolls report was mixed, with the U.S. dollar index showing oscillatory movements; oil prices rose, boosted by the impending EU sanctions on Russian oil; and U.S. stocks maintained losses due to investor expectations of an aggressive Fed rate hike. This week's focus on the U.S. CPI and PPI, UK GDP and the monthly crude oil market report.


[Warm up - Overnight Market Review

Global bond markets: U.S. bond yields rose on Friday as the curve steepened, despite data showing that upward pressure on payrolls eased as the labor market remained strong. U.S. 10-year Treasury yields climbed 6 basis points to 3.129%; U.S. 2-year Treasury yields rose 0.3 basis points to 2.727%; and Chinese 10-year Treasuries rose 0.9 basis points to 2.843%.

Global currency markets: The dollar index reached its highest intraday reading since December 2002 at 104.07 on Friday, following two days of oscillating movements as investors focused on how hard the Federal Reserve might raise interest rates in response to rising inflation. The dollar index futures were largely flat at 103.68. The pound fell to its lowest level since June 2020, a day after the Bank of England raised interest rates to their highest level since 2009 but warned that the economy was at risk of recession.