The USD came under sharp selling pressure across the board from about BST15.30 onwards yesterday. USD/JPY lead the plunge lower falling down 3 big figures to under the 96 level in a little under 2 hours. Markets appeared to be panicking ahead of today’s NFP print. Bullish USD positions were being washed out.
But moves in other US markets were more subdued. The US 10-year Treasury yield fell only 2bps, the S&P 500 closed up 0.8%, albeit after dipping back temporarily under the 1600 level. A bad labour market report today would likely send markets plunging and could still mark the end of the multi-month stock market rally.
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Commonwealth Bank