Payrolls Ahead
USDJPY continued its advance overnight after finally breaking above 95.00 on Thursday. Rising US yields helped it on its way, and the 10y yield now finds itself back above 2.0% for the first time in two weeks. Yield support led to more broad-based dollar strength too: Cable traded back below 1.50 again despite Thursday’s unchanged policy decision from the Bank of England; AUDUSD was heavy too, although it was mainly undermined by a sharp drop in Chinese imports for February. Meanwhile asset markets continue to chalk up new highs (arguably lending credence to concerns from some FOMC policymakers that in seeking to navigate a way out of the current crisis, central bankers are sowing the seeds for a new one): the Dow Jones Industrial Average hit yet another high, as did JGB futures, and New Zealand equities too. Overnight the Nikkei-225 recovered to levels last seen in September 2008.
Click here to read the full report: UBS Morning Adviser
UBS Investment Bank