EUR RALLIES INTO PAYROLLS AS NEG INT RATE IDEA FADE
– USD is biased for weakness leading into nonfarm (cons. 140k).
– USD expected reaction to nonfarm—see below for detailed review.
– CAD flat as market digest uncertainty around new BoC Gov Poloz.
– EUR rallies ‐ ECB members hint neg interest rates far from done deal.
– EUR likely to rally in near‐term on support from relative shifts in G4 central bank balance sheets.
– GBP is strong after services PMI surprises slightly higher at 52.9.
– JPY is flat; as Japan celebrates Greenery Day holiday.
– CNY flat; speculation that the PBoC will loosen rules around foreign institutional investment opportunities; non‐manu PMI fell to 54.5.
Click here to read the full report: FX Daily
Scotiabank