Forex Today: NFP is the only game in town

Matías Salord FXStreet

The US official employment report will be released on Friday, with markets closed around the world for Easter. Nonfarm Payrolls are seen rising by 240,000 in March. Trading volume will likely be light, with volatility spikes around the release of the NFP. Before and afterwards, not much action is expected.

Here is what you need to know on Friday, April 7:

Holidays and an empty economic calendar in Asia warrant limited price action ahead. Later, a crucial economic report amid thin trading conditions will set the environment for erratic moves in the FX board, including wide spreads.

The Euro was the best G10 performer on Thursday. Germany offered another strong report, with February’s Industrial Production rising by 2%. EUR/USD climbed above 1.0900, and its outlook is neutral to positive.

Data from the US showed a decline in Initial Jobless Claims to 228,000 after sharp negative revisions that point to a looser labor market.

The labor market is starting to look not so tight according to data released this week, but the NFP will have the final word. Payrolls are expected to rise 240,000 and the Unemployment rate to stay at 3.6%. Earnings will also be watched closely. A negative report could increase the bets of no more rate hikes from the Federal Reserve.

USD/JPY ended a three-day negative streak, moving away from a dangerous area toward 132.00, helped by the slight rebound in Treasury yields. Bank of Japan’s Haruhiko Kuroda governorship ends on Saturday.

USD/CAD rose modestly on Thursday, but the Loonie outperformed AUD and NZD following Canadian employment data. The economy added 35,000 jobs in March, surpassing expectations. Next week, the Bank of Canada is seen staying on hold. USD/CAD held below 1.3500.

AUD/USD fell for a third consecutive day, posting the lowest daily close in a week around 0.6670. The Kiwi fell across the board as NZD/USD suffered the biggest slide in weeks to end below 0.6250.

The Mexican Peso outperformed among emerging market currencies, with USD/MXN falling 0.25% to 18.25. The Reserve Bank of India unexpectedly kept interest rates unchanged at 6.5%. USD/INR closed at 81.80, the weakest level in a month.

Gold retreated further but remained above $2,000, while Silver moved sideways below $25.00. Crude Oil prices continued to consolidate, holding on to an 8% weekly gain.

Like this article? Help us with some feedback by answering this survey:

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD flat lines around mid-1.3300s amid Iran tensions

The GBP/USD pair struggles to capitalize on last week's strong move higher and oscillates in a narrow band, around the 1.3350 area during the Asian session on Monday. Moreover, spot prices remain below a technically significant 200-day Simple Moving Average, warranting caution before positioning for an extension of the recent recovery from the 1.3140 zone, or the year-to-date low touched in June.

EUR/USD consolidates below mid-1.1400s as Hormuz risks support safe-haven USD

The EUR/USD pair kicks off the new week on a subdued note and oscillates in a narrow band below mid-1.1400s during the Asian session. Spot prices, however, remain within striking distance of a nearly two-week high, touched last Thursday, amid mixed fundamental cues.

Gold struggles to find acceptance above $4,200; eases from two-week high

Gold struggles to capitalize on its modest Asian session uptick, and trades below a fresh two-week high, levels just above the $4,200 mark. The US Dollar attracts some safe-haven flows amid uncertainties stemming from tensions in the Strait of Hormuz, and acts as a headwind for the bullion. However, receding bets for rate hikes by the US Federal Reserve hold back USD bulls from placing aggressive bets.

Cardano Price Forecast: Bullish momentum persists as traders stay cautiously optimistic

Cardano (ADA) is trading slightly lower on Monday, finding support around the key technical level at $0.186. ADA pauses its gains at the start of this week after posting a massive 31% rally in the previous week. Despite the pullback, derivatives data suggests traders remain cautiously optimistic, while momentum indicators indicate that the uptrend remains intact if ADA holds the key support zone.

Why central banks are loading up on Gold during the current 30% correction

Gold has crashed from $5,500 to $4,000 in five months, marking a decline of almost 30% that has triggered widespread retail panic. However, this correction could present a significant opportunity, driven by an unprecedented market indicator: central bankers and the world's largest asset managers are aggressively buying.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.