Markets brace themselves ahead of US Non Farm Payrolls! 

  • The Dollar Traded mixed as the market is reluctant to put any more directionally risky trades ahead of Non Farm Payrolls today. The market did trade with a positive tone however as US stocks extended Wednesday's gains and dips where bought on risk appetite. This was on the back of weekly Jobless Claims which fell to 472k vs. 475k forecast and US Pending Home Sales increased 5.2% in July. The DJIA traded +50 points higher closing at 10320 and the S&P traded +9 points higher closing at 1090. USDJPY price action on the day was between 83.99- 84.55. Looking ahead, August US Nonfarm Payrolls are forecast at -100k vs. -131k. August Unemployment Rate is forecast at 9.6% vs. 9.5% previously.

    The Euro traded mixed to stronger against most majors as the ECB held at 1.0% as widely expected and President Trichet was positive in the press conference afterwards. Q2 GDP was also confirmed at 1.0% allowing the EUR/USD to consolidate above 1.2800. EUR/USD traded with a low of 1.2775 and a high of 1.2880 before closing at 1.2820. Looking ahead, July Retail Sales are forecast 0.2% vs. 0.0%.                                                  

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.2785 with a preference to enter into Long positions at 1.2795
  • § The USDJPY pivot point is at 84.40 with a preference to enter Short positions at 84.35               

Today's calendar and market movers:

  • § Switzerland Consumer Price Index for August is forecasted at 0.4%
  • § United Kingdom PMI Services for August expected at 52.9
  • § Euro Zone Retail Sales for July is expected at 0.2%
  • § United States Non Farm Payrolls for August is expected at -100K 

Equity Markets: 

  • US equities closed positive yesterday with the S&P500 at 0.91% and the DJIA at 0.49%. The European bourses were positive with the FTSE up 0.09% the DAX and the CAC closing at 0.00% and 0.21% respectively. The NIKKEI and the HSI at the time of writing is 0.57% and 0.06% respectively.