EUR: Opened early Europe at $1.2902, Euro-dollar opened flat in Asia around $1.2937 and after some early demand interest lifted to $1.2951. The pair met resistance and ground lower as interbank traders positioned shorts ahead of stops beneath $1.2925. Late dealings saw sharp supply from a Swiss bank add weight and the pair flushed stops to $1.2891, before dip demand led recovery attempts back above $1.2900. Euro-dollar opened flat in Europe and flirted with the $1.2900 level as talk circulated of a $1.2880-1.3040 DNT expiry today. Soft PMI mfg readings across the eurozone failed to inspire and the pair flushed stops to $1.2865 on release of comments from Schaeuble that said the G20 needs structural reforms, fiscal consolidation to ensure market trust, growth. Asian sovereign demand led the recovery off lows to settle in a tight range as traders look ahead to release of US Non-farm payrolls data at 1230GMT.
GBP: Opened early Europe at $1.6088 and stg0.8017, GBP opened flat in Asia with traders reporting of light volumes, the rate soon ground lower to $1.6103 on dollar demand across the board. Support was met ahead of bids at $1.6100 and recovered to $1.6120, before tracking sharp euro-dollar slippage to session lows of $1.6085. Euro-sterling was tied to a narrow range before falling on Swiss name supply in euro-dollar to stg0.8012, later bouncing to stg0.8020 ahead of Europe. Tight range trade continued in Early Europe and the rate slipped in tandem with euro-dollar to $1.6079 on comments from Schaeuble that said the G20 needs structural reforms. Dip demand led recovery efforts and extended to $1.6104 on release of stronger than expected UK PMI Construction data. Late profit take sales eased and the pair flirts with $1.6100 ahead of NY. Strong UK PMI data pressed euro-sterling through key stg0.8000 support and triggered stops on the move to print fresh 1 month lows of stg0.7996. The cross bounced to stg0.8003, however any recovery attempts seen shallow.
JPY:Opened in early Europe at Y80.31 and Y103.62, Dollar-yen opened in Asia at Y80.12 and ground higher through the Tokyo fix on broad dollar demand to Y80.29, before profit take sales eased. Late trade saw the rate nudge higher again to Y80.32 ahead of Europe. Euro-yen opened flat around Y103.70 and was tied to a narrow 15 pip range for the session, before late Swiss bank supply in euro-dollar pressed lower. The cross extended losses to print Y103.46, before dip demand led recovery attempts to settle around Y103.65. Dollar-yen lifted in early Europe to Y80.34, before sharp cross supply pared gains. Trade volumes continued light and the rate later bounced to Y80.30 and settled in a tight range. Strong offers from Japanese banks seen capping moves on the topside at Y80.40, a break triggers stops with more offers seen ahead of the Y80.50 barrier. The cross traded sideways before tracking euro-dollar slippage to Y103.23 on Schaeuble comments that said the G20 needs structural reforms. Dip demand led recovery attempts and extended to Y103.45 ahead of NY and release of US Non-farm Payrolls.
LOOKING AHEAD:
– Canadian Oct 12 Employment is scheduled for release at 1230GMT.
– The main event of the day arrives at 1230GMT, with the release of the much anticipated US October Non-farm payrolls for October. Nonfarm payrolls are forecast to rise by 125,000 in October after a 114,000 rise in September. The unemployment rate is forecast to tick up to 7.9% after plunging to 7.8% in September on a spike in household employment. Hourly earnings are expected to rise 0.2% while the average workweek is forecast to hold steady at 34.5 hours.
– At 1345GMT, the US October ISM-NY Business Index is scheduled for release.
– US data continues at 1400GMT, with the release of US September Factory Orders. Factory new orders are expected to rise 4.9% in September. Durables orders were already reported up 9.9% on stronger aircraft orders after their August plunge, as well as a rise in
non-transportation orders. Nondurables orders are expected to rise modestly.
– San Francisco Federal Reserve President John Williams is due to speak about the economy today around 1825GMT.
– Late US data sees US C&I loans, due to be published at 2015GMT
EasyForexNews Research Team