Dollar sells off against yen on weak non-farms data
City Index April 7, 2014 2:13 PM
<p>The FX markets are trading with a slight risk off and dollar negative bias following the release of non-farms data on Friday. The report suggested that […]</p>
The FX markets are trading with a slight risk off and dollar negative bias following the release of non-farms data on Friday.
The report suggested that negative weather effects over the winter months have now diminished. The headline number came in at 192k, just below the 200k consensus forecast with revisions to the prior months coming in at an increase of 37k, whilst the unemployment rate remained steady at 6.7%.
The dollar has sold off against JPY as US yields continue to trade lower, with the Nikkei trading down 2% on the day. The World Bank cut China’s GDP forecast for 2014 by 0.1% to 7.6%, whilst re-affirming the 2015 forecast at 7.5%.
With no data releases today, the markets will look for hints of any shift in ECB policy as members Mersch, Weidmann and Constancio are scheduled to speak.
We also keep an eye on developments in Ukraine as reports suggest that Pro-Russian activists have stormed into administration offices in Donetsk demanding a referendum.
Supports 1.3680-1.3645-1.3560 | Resistance 1.3740-1.3785-1.3825
Supports 103.00-102.65-102.35 | Resistance 103.50-103.85-104.15
Supports 1.6560-1.6540-1.6480 | Resistance 1.6615-1.6665-1.6715
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.