Overall today was a calm ending to a week that seemed less chaotic than the previous one, with markets in neutral ahead of vital US jobs data due out later in New York. With US Non-farm payrolls and unemployment rate data looming, Asian markets eased into a weekend that will be host to the latest G-20 meeting in South Korea. Traders are cautiously watching tomorrow’s data which is rumored to represent the biggest gain in jobs in almost 27 years; good news for risk? Yes, however the caveat here, and it’s a large one, is that the majority of the newly gained jobs are short term positions for the US Census Bureau.
As stated, foreign exchange markets were tranquil, with the EUR/USD coasting between 1.2155 and 1.2185 for the day. Comments out of the IMF hinting that Greece may eventually meet with fiscal failure and that the coffers of the IMF were nearly depleted kept a damper on any risk appetite. EUR/JPY was able to touch 113.10, but was closer to the 112.75 levels heading into the London session.
In Japan, Finance Minister Naoto Kan, a fiscal conservative, was chosen to be the next premier of the nation to no one’s surprise. Kan will be Japan’s fifth Prime Minister in three years. The USD/JPY rose to 92.85 on the news as would be expected as Kan has been outspoken about his affection for a weaker yen. XAU/USD was range bound between $1203.50 and $1208.00 after an earlier $20 drop in New York.
As noted, be aware of not only the top tier employment data due out in early US trading, but keep an ear open for comments out of the G-20 Meeting in South Korea this weekend, comments which could push currencies around prior to the markets open on Monday. Have a nice weekend…