Daily overview

U.S. job market data reported on Thursday strengthened risk aversion on financial markets. As a result the traditional refuge currencies – the Japanese yen and U.S. dollar – were strongly supported. U.S. non-farm employment number in June unexpectedly contracted stronger than expected. Jobless level hit at the same time the highest in 25 years. U.S. non-farm employment number reduced in June by 467 000, while the market thought jobs number would be down by 350 000. Monthly pace in employment decrease was slow down as compared with the high at the year beginning when the U.S. on average had cut 700 000 jobs in a month. Totally 6.5 bln jobs was cut in the U.S. economy from breakout of the recession since December of 2007. S&P index lost 2.9% at the session's end in New York. On this back the Japanese yen, which traditionally is demanded in the stock market worsening situation, was strengthened more than 1% to Y95.80 against the U.S. dollar and as far as 2% to 134.10 versus the euro.

Euro-zone jobless rate rose to a 10-year high at 9.5%. Last months' figures were reviewed a little. Producer prices in May declined by 0.2%, signalling remaining deflation risk. Euro/dollar dipped throughout all day, after starting session around 1.4150 and falling to 1.3927 in late evening. However during the Friday's Asian session the single currency quickly enough recovered to 1.40.

The British pound against the U.S. dollar was traded within a narrow range of 1.6320-1.6420. The sole report from the United Kingdom showed British home sector activity in June continued falling. CIPS index for UK housing sector dropped to 44.5 against 45.9 in May. UK service sector activity rose in June, however the growth pace a little slowed down in comparison with the May's level. PMI for UK service sector fell in June from May's 51.7 to 51.6. The forecast figure was at the level at 52.5. Due to reported data the support level of 1.6320 for sterling/greenback would stand up and the pound could continue falling to 1.62-1.6180.