Expect markets to focus on the US jobs report to come later in the day
The greenback is leading the charge ahead of European trading but ranges have been fairly tight to say the least. Most major currencies are near the lows at the moment against the dollar as markets are positioning for a stronger print to come on the payrolls data.
The aussie and kiwi continues to be weighed down by the story of rising Treasury yields and it's been a case of being unable to get off the floor for the entire week for both currencies. Not even better retail sales data earlier has been enough to help provide the aussie with some form of relief.
As markets look towards the US jobs report to come, the session ahead may be a bit lackluster with little key data releases of note as well. Rising yields have once again cause Asian equities to slump but they're only mild losses so I don't expect a risk off mood to dominate the European session to come.
In that light, the focus will be on wages data and another set of good numbers in the jobs report later will help provide yields with a platform to move higher again. And if that should happen, watch out for the reaction in the equities market again - much like yesterday. Either way, it's all about the jobs report to come at the moment.
Here are the ranges on the day so far:
- EUR/USD - 17 pips
- USD/JPY - 25 pips
- GBP/USD - 29 pips
- USD/CHF - 26 pips
- USD/CAD - 16 pips
- AUD/USD - 22 pips
- NZD/USD - 23 pips
