Stronger Hiring, Steady Unemployment: What To Expect In Friday's Jobs Report

Good morning,

- BOJ Aso: Isn't a bad thing for Yuan to become a global currency.

- ECB Draghi: Economic growth is returning, further integration necessary in Europe.

- $AUD, $NZD, and $JPY are expected to be the most active majors vs $USD with 1W implied volatility at 13.50, 13.28, and 11.43 respectively.

- As the BoE's rate forecast eases back, certain Pound pairs are hitting noteworthy support. $GBPCAD is one of them.

- NFPs is a frequent spark for volatility, but wage growth is at the crux of Fed rate speculation.

- On Thursday's session, $CAD, $AUD, $NZD have been the best performing majors vs $USD with +0.41%, +0.20%, +0.13% spot returns respectively.

- The September payrolls report is bound to be more thoroughly scoured than most. Coming amid a rout in financial markets and jitters about a global slowdown, it'll offer a window into how the U.S. labor market — the engine powering the world's largest economy — is faring. Despite steady hiring in the U.S. this year, international risks threaten to dent growth and depress inflation, as Federal Reserve policy makers noted in September when they delayed raising interest rates. With the central bankers meeting again later this month, all eyes will be on how much the job-market scorecard bolsters the case for the Fed to move...The unemployment rate will probably hold at 5.1 percent, the Bloomberg survey shows, matching August as the the lowest reading since April 2008. It's inching closer to the 4.9 percent that Fed officials now consider consistent with maximum employment.

- Fed's Williams: U.S. still growing well even with $USD apreciation. Appropriate to raise rates this year, continue in 2016...Some of these Fed officials are taking all the dovish reasons being thrown out not to hike rates this year...also said ''December liquidity issues - thin market trading due to holiday conditions - won't impact their timing.''

- EUR Eurogroup's Dijsselbloem: Greece still preparing prior actions; Greece hasn't met all prior actions yet...sees no delay in Greek aid program.

- Thank you for honouring me today with this Global Citizen Award. And thank you also for honouring, through me, all those who have worked – and continue to work – to maintain the cohesion of the European Union, and to bring its integration process closer to completion...The European Union and its monetary union are regional projects with global implications. This is firstly due to the size of Europe in the global economy...The progress achieved over the past three years to stabilise and strengthen the euro area is real. Growth is returning. The way forward is well identified. And we will not rest until our monetary union is complete. It is in our interest. It is also in your interest and that of everybody, everywhere.

- Morgan Stanley picks AUD/USD as its technical FX chart of the week where MS maintains a bearish view medium-term but looks to buy the pair tactically in the near-term. MS provides some insights on where traders should establish this trade and place their targets accordingly. On the long-term AUD/USD Chart: "When AUDUSD broke out of the bottom end of the longterm channel at 0.84, a further bearish AUD signal was triggered. We still target 0.65 for the end of next year but the short-term charts below show that there could be some upside in the coming weeks. Our positioning tracker suggests that the market remains short AUD, therefore opening room for a reversal," MS argues.

- When German Finance Minister Wolfgang Schaeuble looks for “proof” that the euro region has the right strategy for tackling the debt crisis, he points to Portugal: The bailed-out nation is taking its medicine and recovering...

- Major news for today: US Average Hourly Earnings m/m, US NFP, US Unemployment Rate, GBP Construction PMI.