The AUD is the strongest. The GBP is the weakest. Employment data awaited
As North American traders enter for the day, the AUD is the strongest, while the GBP is the weakest. Data out of UK was pretty weak today and that currency has garnered most of traders attention.
The USD is stronger vs. the GBP, JPY, CHF, little changed vs. the EUR, CAD and NZD and down vs the AUD.
The US (and Canada) employment report is due at 8:30 AM ET/1230 GMT, with expectations of a gain of 178K vs 138K in non farm payroll jobs, the unemployment rate is expected to be unchanged at 4.3%, and the average hourly earnings are expected to rise by 0.3% m/m (vs 0.2% last month) and 2.6% y/y vs. 2.4% last month. Canada is expected to show a gain of 10K in the Net change in employment and the unemployment rate is expected to remain steady at 6.6%.
As mentioned most of the focus for traders is on the GBP pairs with the largest trading ranges. Nevertheless, each of the currency pairs (with the exception of the GBPAUD) have low to high trading ranges less than the 22 day averages (about a month of trading). The EURUSD, USDCHF, USDCAD, AUDUSD and NZDUSD are all trading with ranges WELL below the averaged (the USDCHF has the largest range of only 31 pips). The spring may be getting tight before the key releases at 8:30 AM ET. There is room to roam.
A shapshot of other markets before the data shows:
- Spot gold down -$3 to 1222
- WTI crude oil down -$1 to $44.52
- US stock futures are a bit higher S&P up 1.25 points. Nasdaq futures are up 8 points.
- US yields are higher: 2 year 1.407%, up 1.2 bp. 5 year 1.953%, up 1.8 bp. 10 year 2.387%, up 2.1 bp. 30 year 2.922% up 2.1 bp
