Article Highlights

  • Canadian building permits down 2.5% vs. projected 1.4% gain
  • U.S. initial jobless claims at 234K vs. 251K expected, 259K previous
  • U.S. Challenger job cuts up 17% in March, down 2% year-over-year
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Major pairs cruised quietly in their ranges as dollar traders seem to be holding out for the upcoming NFP release while rising geopolitical tensions kept investors on edge.

Major Events:

U.S. military response to attack in Syria? – Headlines on the chemical bomb attack in Syria are keeping risk-taking in check, especially since the U.S. government has reportedly started looking into military options.

Trump’s tough talk on Syria was part of his recent speech as he said that the Assad regime is responsible for the attack and that it is a serious matter that requires a serious response. According to a Pentagon official, among their options are to ground Syrian aircraft and to launch airstrikes. So far, the White House has also talked to several leaders about setting up safe zones in the area and has clarified that the President won’t be telegraphing his decisions, whether through Twitter or other means.

North Korea’s missile tests – In another part of the world, North Korea was reported to have launched yet another missile that officials believe are part of their series of nuclear tests over the past couple of years. This is their fourth (documented) missile test so far this year, leading many to worry that the hermit nation is making progress in its goal to produce an intercontinental ballistic missile aimed at the United States.

Now this comes at a pretty awkward time ahead of President Trump’s meeting with Chinese President Xi Jinping since China is North Korea’s closest ally. Talk about having a huge elephant in the room!

Prior to this summit, the Donald already mentioned that the U.S. will do something about the situation if China isn’t able to rein North Korea in, so that might be one of their conversation topics while chillin’ at Trump’s Mar-a-Lago estate.

U.S. medium-tier jobs data – In economic news, the latest batch of medium-tier jobs figures from the U.S. printed mixed results. Initial jobless claims slid to 234K in the previous week versus the projected improvement from 259K to 251K, reflecting a significant decline in unemployment. Meanwhile, the Challenger job cuts report printed a 17% monthly increase for March to 43,310, hinting that the labor market ain’t out of the woods just yet.

Major Market Movers:

USD –  With bond yields holding mostly steady, the Greenback was able to squeeze out some gains against its peers as risk aversion was in play.

EUR/USD edged down from 1.0676 to 1.0641, AUD/USD retreated from a high of .7568 to a low of .7538, USD/CAD found support at the 1.3400 area and is up to 1.3420, and NZD/USD crawled down from a high of .6990 to .6966.

Watch Out For:

See also:

London Session Recap
Asian Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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