Non-Farm Payrolls day but beware of August revisions
City Index October 5, 2012 2:38 PM
<p>FX markets remained in tight ranges overnight ahead of the US jobs report released today at 1.30pm. Equity markets are broadly higher, helping risk currencies, […]</p>
FX markets remained in tight ranges overnight ahead of the US jobs report released today at 1.30pm. Equity markets are broadly higher, helping risk currencies, with EUR/USD breaking above 1.3000. The catalyst behind the move stems from the Mitt Romney win in the US presidential debate as the Republican candidate criticised elements of the Dodd-Frank Bill. History shows us that a Republican administration in the US is normally perceived to be more market friendly, although the party has already stated that it will not be giving Bernanke a third term and is reluctant to allow the Fed to add more stimulus.
The BoJ released its monthly monetary policy decision which, as expected, left policy unchanged with Japan’s economic minister saying he ‘ feels a sense of crisis about the strong JPY trend and the fact that Japan has failed to pull out of deflation.’
Today we see the release of non-farm payrolls, with the consensus looking for an additional 115k jobs to be added from 96k last month and the unemployment rate to hold steady at 8.1%. Bear in mind, however, that the revision to the August number is often very large traders recommend caution when reacting to the headline number.
Supports 1.2970-1.2930-1.2850 | Resistance 1.3030-1.3100-1.3180
Supports 78.00-77.50-77.00 | Resistance 78.55-78.85-79.05
Supports 1.6125-1.6080-1.6000 | Resistance 1.6220-1.6290-1.6350
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