The losses are easing and the market is attempting to correct some of the heavy losses seen yesterday, where the dollar and major currencies are consolidating ahead of the infamous payroll numbers that is holding the market on the edge.

The heavy selloff seen yesterday extended into Asian morning today and only started to ease with the start of the European session and the attempts for gains across equity markets as banks offset the commodity losses and the correction is needed for yesterday's rout.

The dollar returned to trade marginally flat for now around 74.13 down from the intraday high of 74.27 and above the low of 73.94.

Greenback's consolidation ahead of the news helped commodities rebound slightly from the heavy morning losses, where gold is trading bullishly around $1485.00 off lows at $1470.00 and oil eased the rout and rebounded to $97.35 from the low of $94.62 but still trading bearishly as the heavy losses are clear for crude after yesterday's 10% slump and reaching as heavy as 16% of losses which now it is minimizing.

The selloff eased as investors held their grounds ahead of the jobs report from the US later into the session. The forecasts for job gains were downgraded to only 185,000 from as high as 195,000 earlier this week. The expectations for the unemployment rate remain steady at 8.8%.

We saw the ADP lower than expected, employment index in the ISM manufacturing and services eased, and the four-week jobless claims average rose, all signaling a lackluster report for today.

The euro is also holding its grounds hovering in a tight range and now around 1.4536 between the high of 1.4587 and the low of 1.4506. The rise in German industrial production above forecasts did little for the euro that is burdened with losses after yesterday with investors unwinding their interest rate bets.

Sterling also was not supported by the reported rise in producer prices, as the outlook for the BoE move is still the same with downplayed bets for a move soon with the focus now on growth not monetary tightening. The GBP/USD is trading with some gains supported slightly by the PPI for now around 1.6394 recovering from the low of 1.6352 and off the high of 1.6432.

The Japanese yen weakened versus the dollar in correction after the massive gains and drove the pair higher after yesterday temporary trading below 80 and closing slightly above it. Today the USD/JPY moved higher to the high of 80.64 and above the low of 80.04 in a marginally tight range as the pair aims to move again below 80 which might trigger more risk of another intervention to prop up the Japanese yen.

High volatility prevails till the jobs report today, where weak numbers will break the consolidation to the benefit of the US dollar for sure, while good numbers will be a correctional upside move for the heavy losses seen yesterday and squaring of positions ahead of the weekend.