A sense of calm prevailed across the fx space amid a typical pre-NFP caution trading in Asia this Friday. The US dollar remained broadly lower, still hit by the FOMC follow-through, despite the bounce in the Treasury yields that dragged Gold lower from weekly tops.
The Antipodeans once again outperformed after the Chinese Caixin Manufacturing PMI data showed a big beat on the expectations with a 51.7 figure in October. Although the upside remained limited by re-emergence of US-China trade concerns. The Aussie consolidated the data-led spike above the 0.69 handle while the Kiwi eased-off daily tops of 0.6442 but still remained well bid above the 0.6400 level. The USD/JPY pair bounced-off lows and recovered to the 108 handle, tracking the rise in the Wall Street futures and Treasury yields. The Canadian dollar continues to find some support from the modest gains seen in oil prices while the Swissie traded modestly flat ahead of the Swiss Retail Sales report.
Heading into Europe, both the European currencies, the EUR/USD and Cable are trading with mild gains. The Fiber’s upside still remains capped below 1.1170/75 levels while GBP/USD holds above the 1.2950 barrier ahead of the UK Manufacturing PMI release.
Main Topics in Asia
US Pres. Trump: UK Labour leader Corbyn would be 'so bad' for Britain
N. Korea says it successfully test-fired super-large multiple rocket launcher – Yonhap
US imposes further sanctions on Iran, relating to construction/missile program
Japan finmin Aso: Not considering need to compile economic stimulus measures now
BOJ offers to buy JPY 380 bln worth of JGBs
Caixin Manufacturing PMI: 51.7 vs expectations of 51, AUD/USD firms
USD/IDR stays firmer as Indonesia's annualized CPI misses estimates with 3.13%
Key Focus Ahead
We have another busy day ahead, in term of the economic calendar, with plenty of key event risks ahead while markets await fresh updates on the US-China trade issue. Recall that the leading negotiators from both the US and China are likely to hold a telephonic conversation on trade later today. Meanwhile, any fresh Brexit/ UK political headlines will also grab some eyeballs, with all eyes set on the December 12 polls.
On the macro data front, the EUR calendar is relatively light, with the Swiss Retail Sales data due on the cards at 0730 GMT alongside other minority reports from Switzerland. However, the UK Manufacturing PMI, due at 0930 GMT will headline. In the NA session, the main focus will be on US Nonfarm Payrolls along with the jobless rate and hourly wage growth data, all to be released at once at 1230 GMT. Also, the US Manufacturing sector activity reports from both Markit as well as ISM will be eyed around 1400 GMT. The US economic news will offer fresh hints on whether the Fed will resort to another rate cut in December.
Later in the American mid-morning, we have a slew of US Federal Reserve (Fed) officials scheduled to speak, including Williams, Clarida and Quarles. At 1700 GMT, oil traders will look forward to the Baker Hughes US Oil Rig Count data.
EUR/USD: Market turns indecisive ahead of US Nonfarm Payrolls
The EUR/USD market seems to have turned indecisive ahead of the all-important US Nonfarm Payrolls report, which is expected to show the job growth slowed in October due to the General Motors strike. The spot could drop below key support at 1.1131 if the US wage growth numbers blow past expectations.
GBP/USD holds on to recovery gains ahead of UK PMI, US NFP
GBP/USD keeps the bids amid UK political optimism, greenback weakness. US-China trade story keeps risk sentiment dwindled ahead of the key data. Fedspeak and the US ISM Manufacturing PMI add to the catalysts.
US Non-Farm Payrolls Preview: The trend remains the same
October payrolls are expected to fall on General Motors strike. ADP jobs of 125,000 in October were at the three-month trend. Consumer economy and sentiment remain strong backed by labor market.
US October Manufacturing PMI Preview: Waiting for the China deal
Modest rebound in sentiment forecast but index will remain in contraction. The unsigned phase one trade deal with China has had a little positive effect as yet. Export orders in September were the weakest since the recession.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.