Week of May 6, 2012 thru May 12, 2012

TheFXSpot: US Jobs Disappoint,EZ Elections Prompt Risk Unwinds


NEW YORK, May 4 (MNI) - Disappointment with a tepid U.S. non-farm payroll report and uncertainty regarding elections in France and Greece Sunday prompted global investors to pare back risk positions Friday.

US HAMP Program Adds 19.9K Modifications in April


WASHINGTON (MNI) - The Treasury Department Friday reported the Obama administration's Home Affordable Modification Program continued to make modest gains in April, adding 19,900 permanent mortgage modifications, slightly fewer than the 22,300 in March.

Through April, the program has completed 994,000 permanent modifications since it began in April 2009.

The report said the pipeline of new trial first-lien modifications sffrf 20,900 compared to 17,500 in March.

HUD Assistant Secretary Raphael Bostic said mortgage delinquencies have declined for four consecutive months and remain substantially below a year ago's level. "We're making important progress," he said.

Next Wk/US: PPI, Trade Balance, Claims, UMich, Tsy Statement


WASHINGTON (MNI) - The week ahead features the Producer Price Index and the monthly international trade balance as well as consumer confidence and some second-tier data.

The March trade balance report, to be released Thursday at 8:30 a.m. ET, will be watched for its possible effect on the second estimate of first-quarter GDP, since this figure is only estimated by the Commerce department in the advance report. Since the expectation is for a significant widening in the trade deficit, any less negative surprises could mean a meaningful upward revision to GDP.

Initial jobless claims will also, as always, be worth watching, as the previous week's data showed a surprise drop in claims, possibly indicating a reversal in the recent upward trend.

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT

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07-May 1330/0930 MNI presents panel discussion on "Can a Statesman Still Survive - and Flourish - in American Politics?" at the National Press Club, featuring MNI congressional correspondent John Shaw, author of "Richard G. Lugar, Statesman of the Senate," with former Rep.

FXWRAP: Dlr Mixed After So-So Employment Data, Euro Slips


NEW YORK, May 4 (MNI) - The dollar racked up modest gains over the euro while losing ground against the yen Friday after the monthly U.S. employment report left traders nonplussed.

Euro-dollar was changing hands at $1.3087 in afternoon dealings, the euro trading close to its low of the day after traversing $1.3080-1.3180 during U.S. hours, beginning the day at $1.3130.

Dollar-yen meantime was also flirting with its low of the session, trading at Y79.87 after seeing a narrower Y79.82-80.40 range during U.S. hours.

US Swaptions: Vol Implodes Despite Lower Than Expected NFP


CHICAGO, May 4 (MNI) - Over-the-counter swaption and listed option volatility withered back to four-plus year lows following Friday's lower-than-expected headline April payrolls increase of 115,000 jobs.

Repeat: US Apr Jobs +115K, Unemp 8.1%, Another Modest Month


--Repeating Story Sent at 08:30 to Correct Unemp Rate in Headline
--Unemploy Rate Dips as Does Labor Force; Hours-Wages Gain

WASHINGTON (MNI) - The U.S. April employment report was mixed, marking another modest month of growth after jobs slowed in the spring.

April payrolls printed +115,000 but February-March revisions totaled +53,000, putting the overall picture about as expected. (Analysts had expected about +165,000 April jobs.)

The unemployment rate continued to fall, and was down another 0.1 point to 8.1%, a low since 7.8% in January 2009. But that reflected further slippage in labor force participation, now 63.6%, a low since 1981.

Federal Reserve State of Play - By Steve Beckner - May 4


When Federal Reserve Chairman Ben Bernanke said on April 25 that the Federal Open Market Committee is prepared to do more asset purchases if necessary in his post-FOMC press conference, he may have sounded somewhat less assertive than he did in his January press conference. Certainly he wasn't promising a third round of quantitative easing. But his words should not be taken lightly. Hi

Federal Reserve State of Play - By Steve Beckner - May 4


When Federal Reserve Chairman Ben Bernanke said on April 25 that the Federal Open Market Committee is prepared to do more asset purchases if necessary in his post-FOMC press conference, he may have sounded somewhat less assertive than he did in his January press conference. Certainly he wasn't promising a third round of quantitative easing. But his words should not be taken lightly. Hi

Talk From The Trenches: Bulls/Bears Duke It Out Reluctantly


NEW YORK, May 4 (MNI) - The April employment report was pretty uninspiring and the markets are already beginning to speculate about more help from the Federal Reserve to keep the bond markets greased.