US payrolls in focus

The heavy week of FX data reached its end as today brings Jobs Data out of the United States for the month of July, after the Eurozone’s and UK’s Markit Services PMI announcements. Markets brace for the final services PMI data from across the Euro area that will be reported from 07:15 GMT onwards while the Swiss CPI will be released at 07:15 GMT. Next of note remains the UK services PMI at 08:30 GMT, however, the main event risk for today remains the US July labour market report due at 12:30 GMT, with key focus the non-farm payrolls and wage growth numbers.

Wednesday’s FOMC rate decision brought little by way of new information to markets, but it did end up driving a wave of US Dollar strength. The Euro fell during early trading on Thursday but found enough support at the 1.158 level which helped the pair to attempt rebound movement. The market for the pair will continue to be very noisy today, with EZ’s Markit Services PMI for the month of July reporting at 08:00 GMT, and the NFP data update at 12:30 GMT. Also, the retail sales figures from the Eurozone will be eyed for fresh trading impetus on the Euro. Releasing at 09:00GMT.

The USD/JPY is aiming to make break above 112.00, despite the dollar pulling back on yesterday’s session. At the beginning of the day, the Bank of Japan unexpectedly offered to buy 400 billion yen of 5-to-10-year bonds, to counter rising yields after the 10-year yield touch an 18-month high of 0.145%. US yields, driving the pair as low as 111.25. Today, BOJ has released the meeting minutes of the July 14th-15th policy meeting, though the impact is greatly muted after this week’s central bank statement saw broad adjustments to their current fiscal policies.

The GBP/USD is trading just above the 1.30 major technical level after seeing a familiar sell-off pattern on Thursday. The BoE’s rate hike saw limited buying for the GBP/USD as the central bank warns of a slower rate of hikes looking forward. The main GBP-focused release is the Markit Services PMI at 08:30 GMT but the mid-tier indicator will be largely overshadowed by the US NFP job report.

The WTI Crude Oil prices caught some lift on Thursday with WTI barrels knocking on $70.00 per barrel, before settling just beneath the critical level heading through Friday’s trading, mainly pushed from reports that crude supplies fell. US supplies are continuing to expand at a quicker pace than markets were expecting, and a failure of domestic demand to begin eating away at the overhang could see further downside. The jobs data will of course affect this market as well.

Gold prices traded lower ahead of the U.S. July job reports, currently trading at 1,207.75.