Europe Brief: Euro Zone GDP 0.0 % and 0.7 % as expected. Germany Industrial Production 1.9 % vs 0.3 % f/c. Norway Manufacturing Production -0.1 % vs -0.5 % f/c. Swedish Industrial Production YoY -5.7 % vs -1.0 % f/c. BoAML close their EUR/USD short, saying a bounce is likely in near-term. Barclays have a EUR target of 1.2745, see little support until then.
Global Market: DAX down 0.10 %, FTSE dropped 0.70 %, CAC and Eurostoxx 50 both declined 0.30 %. US 10 year yield stands at 2.45. Gold at $1266, Silver at $19.11, Crude Oil at $94.75.
FX Overview: EUR/USD bounced in the European trading session and the market was going for the topside stops. The pair made it to 1.2964, but the larger stops through 1.2970 remain intact. Initial resistance seen at 1.2975 and then at the big psychological resistance level of 1.30. To the downside, likely some bids ahead of the 1.29 barrier option, but given how easily 1.30 was taken out, it seems the barrier structures won't be much of an obstacle. Key support next seen at 1.2750.
Cable is still struggling. The pair reached a high of 1.6332, but specs who were betting on a quick bounce pre-NFP got disappointed. GBP/USD is likely to track closely the movements in EUR/USD until the next key UK data event. USD/JPY dropped from a London high of 105.36 to 105.08 and is now consolidating around 105.15 pre-NFP. A more upbeat NFP print could lead to a weekly close above 105.50, which would certainly attract fresh demand in the following few sessions.
AUD/USD and NZD/USD have been well-bid in Europe, rising to 0.9171 and 0.8305 respectively. Meanwhile, USD/CAD has been stuck in a 15 pips range ahead of the key data releases. Keep in mind that we'll get the Canadian employment figures at the same time as the US numbers, so volatility in that pair could be even greater.
And finally, the #NFPguesses...I'm going for 239k!
Good luck
Global Market: DAX down 0.10 %, FTSE dropped 0.70 %, CAC and Eurostoxx 50 both declined 0.30 %. US 10 year yield stands at 2.45. Gold at $1266, Silver at $19.11, Crude Oil at $94.75.
FX Overview: EUR/USD bounced in the European trading session and the market was going for the topside stops. The pair made it to 1.2964, but the larger stops through 1.2970 remain intact. Initial resistance seen at 1.2975 and then at the big psychological resistance level of 1.30. To the downside, likely some bids ahead of the 1.29 barrier option, but given how easily 1.30 was taken out, it seems the barrier structures won't be much of an obstacle. Key support next seen at 1.2750.
Cable is still struggling. The pair reached a high of 1.6332, but specs who were betting on a quick bounce pre-NFP got disappointed. GBP/USD is likely to track closely the movements in EUR/USD until the next key UK data event. USD/JPY dropped from a London high of 105.36 to 105.08 and is now consolidating around 105.15 pre-NFP. A more upbeat NFP print could lead to a weekly close above 105.50, which would certainly attract fresh demand in the following few sessions.
AUD/USD and NZD/USD have been well-bid in Europe, rising to 0.9171 and 0.8305 respectively. Meanwhile, USD/CAD has been stuck in a 15 pips range ahead of the key data releases. Keep in mind that we'll get the Canadian employment figures at the same time as the US numbers, so volatility in that pair could be even greater.
And finally, the #NFPguesses...I'm going for 239k!
Good luck
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