Non-farm payrolls Friday

<p>Yesterday we ended up with USD strength after the awaited ECB and BoE statements, with nothing unexpected happening and more in the words of forward […]</p>

Yesterday we ended up with USD strength after the awaited ECB and BoE statements, with nothing unexpected happening and more in the words of forward guidance. This, mixed with more strong US data (a fall in unemployment data and a rise in ISM manufacturing) has given USD the edge.

Overnight we saw tight ranges, with Australian PPI coming out weaker than expected and the Australia budget deficit blowing out to $30bn, keeping AUD weak.

Today is all about the non-farm payrolls, which are expected at 184k as compared to the previous 195k. More strong data could be seen here to continue, with ADP being stronger than expected last Wednesday. But expect the market to react in a very volatile way until it decides on how the data will affect the Fed and its thinking.  Factory orders also due out better than previous; expected at 2.3%. Then later tonight FOMC member Bullard will be speaking. The market will be listening for comments on the non-farm payrolls and how the Fed will be approaching tapering and whether it will start in September.

 


EUR/USD

Supports 1.3200-1.3165-1.3100 | Resistance 1.3230-1.3265-1.3345


USD/JPY

Supports 99.30-98.80 98.50  | Resistance 99.75-100.20-100.45


GBP/USD

Supports 1.5100-1.5075-1.5025 | Resistance 1.5145-1.5175-1.5225

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