MARKET POSITIONS FOR USD STRENGTH INTO NONFARM
• USD is broadly stronger, particularly against the European currencies.
• USD focus is nonfarm, a print above 140k to keep USD strength the key trend; anything below 140k will drive sudden bout of weakness.
• CAD is weak leading into dual employment. CDN’s strong release last month leaves plenty of room for forgiveness. Oil jumps higher.
• EUR is weak as Draghi introduces forward guidance solidifying diverging policy between the Fed and ECB. Further EUR weakness likely.
• NOK drops to 2.5yr low on weak industrial production & falling EUR.
• GBP is weak after Carney warns that rates path is not justified.
• JPY is surprisingly stable leading into nonfarm release.
• AUD is strong as market’s focus lies in the G4. Next week key is jobs.
Read the full report: FX Daily
Scotiabank