The focus of the market last week was on the U.S. NFP employment data report for March. Yet the market reaction was somewhat disappointing with passive price movements even though the USD slightly rose to close the week’s trading.
The published data readings were somewhat mixed with the increase in employment being lower than the expected decline. However, the unemployment rate fell lower than forecast and the average income was in line with the forecast to increase.
This situation is likely to affect the Federal Reserve's (Fed) decision to pursue policy tightening measures due to the development of the labor market which is still seen as gloomy.
Deviating from expectations, despite the uptrend, the gloomy movement of the US dollar through the New York session last Friday and the focus will shift to the minutes report of the FOMC meeting this week.
At the last meeting, the Fed had raised its first interest rate since the pandemic and had given a signal to continue raising rates for each remaining meeting this year.
In fact, the rate hike is expected to continue until entering 2023.
Meanwhile, the development of the Russia-Ukraine conflict will continue to be monitored further this week which is seen to continue to affect the movement of commodity markets in particular, which also limits the movement of the Aussie and Kiwi dollars.
Developments in Europe, the German Defense Minister stated that the European Union (EU) needs to discuss the issue of Russian gas sanctions, which will trigger a high price spike.
Data published last week also showed inflation rates in Europe reached a spike at high levels, which would add to the pressure on policy -making by the European central bank (ECB).
Meanwhile, crude oil prices reported a 13% drop last week, the biggest weekly decline in 2 years after U.S. President Joe Biden announced the largest production of U.S. oil reserves.
Gold commodities also declined at the close of trading last session last week influenced by market reaction to the US NFP jobs report. Gold slipped to around $ 1,920 an ounce after hitting last week’s high of $ 1,950.
