A typical pre-US Non-Farm Payrolls caution trading prevailed in Friday’s session, leaving most majors in thin trading ranges.
Asian equities traded mixed while Treasury yields attempted a rebound but failed to fuel a recovery in USD/JPY. The losses in the US equity futures kept the bearish tone intact in the spot.
Heading into the European open, both the GBP/USD and EUR/USD traded modestly flat, with the recovery mode intact, as the focus shifts to the Brexit updates and ECB-speak for fresh impetus.
After a data-busy EUR calendar so far this week, Friday’s docket remains a thin-showing, with the only German Construction PMI due at 07:30 GMT of some relevance and hence, the focus will be on the European Central Bank (ECB) Vice President De Guindos speech at 11:25 GMT. Meanwhile, the incoming Brexit-related headlines will continue to keep the EUR, GBP traders busy.
The NA session offers plenty of event risks, especially with the September month US Non-Farm Payroll data on the cards at 12:30 GMT. The US Labour market report will determine Fed’s next interest rates move, having a major impact on the greenback. Parallelly, the US Trade report and Fed’s Rosengren’s speech will be also published. Also, in focus will remain the Baker Hughes US Oil Rig Count numbers for fresh oil trades.
In the American afternoon, the speeches by the Fed Chair Powell and policymaker Brainard will be closely eyed. Powell is due to deliver the opening remarks at a Fed Listens event which also includes Brainard, George and Quarles.
Oil is currently trading at $52.58 per barrel, having hit a low of $51.03 on Thursday. That was the lowest level since August 7. Gold prices, on the other hand, consolidated Thursday’s solid comeback in the lead up to the key US jobs data.