Daily Digest Market Movers: Gold price recovers some lost ground amid downbeat US data

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  • The US Nonfarm Payrolls (NFP) rose by 175K in April from 315K in March (revised from 303K), missing the market expectation of 243K. 
  • The Unemployment Rate rose to 3.9% in April from 3.8% in the previous reading, while the Average Hourly Earnings dropped to 3.9% YoY in April from 4.1% in March.
  • The US ISM Services PMI slipped into contractionary territory, falling from 51.4 in March to 49.4 in April, below the market estimate of 52.0.
  • Fed Governor Michelle Bowman cautioned that there is a real risk that inflation could remain elevated for much longer than many are expecting, adding that she’s willing to hike rates if inflation stalls or reverses.
  • Chicago Fed Austan Goolsbee stated that the latest US employment report was solid, emphasizing that current monetary policy is restrictive.
  • Fed easing expectations have adjusted, with the odds of a September rate cut rising to nearly 90%, up from 55% ahead of the NFP report, according to the CME FedWatch tool. 


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