USD and JPY appreciate on risk aversion and dodgy economic data.  Growth concerns shifted investors' capital from higher-yielding and riskier-assets.

  • The greenback advances against the euro for a second week gaining over 340 pips from to date.  The euro hit 1.4844 on September 23, the highest level in a year, raising the cost of European exports.
  • ECB President Trichet reiterated his support for a stronger dollar saying the recent euro appreciation has been too much and disorderly movement in the currency market will have adverse impact on the economy.
  • The EU's Economic and Monetary Affairs Commissioner Joaquin Almunia said euro strength would be discussed at the G7 meeting this weekend.  The finance officials will meet in Istanbul and may break from tradition and choose not to release a statement on the global economy and currencies after G20 anointed itself the world economy's main policy forum last week.
  • U.S. employers probably cut 180,000 jobs in September after a reduction of 216,000 in August and U.S. unemployment rate is expected to continue rising for September to 9.8%, the highest since 1983, from 9.7% in the prior month.  The NFP and unemployment figures will be released today by the Labor Department in Washington.
  • This week's Chicago PMI and ADP weaker-than-expected data has raised concerns about today's NFP number.  The correlation between ADP and NFP over the past few months has been displaced.  However, ADP's -254,000 figure still casts doubts and increases the risks of a larger hit to Friday's expectations of 180,000 job losses.
  • Crude oil prices rallied higher but further advance was hampered on weaker economic data out of the U.S. causing investors to flock to the safety of the greenback and the yen.  Gold price retreated and closed below the 1000-mark on Thursday as the greenback rallied.

Currency to watch out for: EURUSD & GBPUSD

  • The EURUSD pivot point is at 1.4600 with a preference to enter into short positions at 1.4590
  • The GBPUSD pivot point is at 1.6025 with a preference to enter into short positions at 1.6015

Today's calendar and market movers:

  • US Non-Farm Payrolls expected to fall by 180,000 for September
  • US Unemployment Rate expected to rise to 9.8%
  • US Factory Orders month on month expected to drop to 0.3%

Stocks:

  • US equities suffered their worst one-day fall in three months on Thursday with the Dow closing -2.1%, the S&P -2.6% and the NASDAQ -3.1%.
  • As of 06:20 GMT the Nikkei is trading at -2.47% and the Hang Seng at -2.32%.