While everyone is looking forward to the NFP report, the euro has gotten a short-lived boost after remarks delivered by ECB’s Nowotny. He said that euro rises shouldn’t be over-dramatized as they are within a historical range. It has lifted the shared currency right off the bat above 1.1930. The price has subsided slightly since then and it’s trading below 1.1920 at the time of writing.
A brief swing higher seen at the euro hasn’t been sufficient to spoil upbeat moods across the European stock markets. Looking at them, there are no uncertainties with regard to the NFP report. Better performance could be a result of the excellent session across the pond where the NASDAQ (US100) managed to close almost 1% higher while the Dow Jones (US30) and the SP500 (US500) picked up 0.25% and 0.57% respectively.
The UK’s manufacturing PMI unexpectedly moved up in August from 55.3 (revised up from 55.1) to 56.9 quite easily beating the consensus at 55. It’s worth underlining that all five components – output, new orders, employment, supplier’s delivery times and stocks of purchases – were consistent with a stronger performance for the manufacturing industry during August, the IHS Markit said in a note. Even as the data could buoy the pound in the future, it’s brought a mere effect thus far. To be honest, all currencies remain exceptionally muted waiting for the NFP.
There was exceptionally calm session across the Asian markets both in equities and FX. Lack of larger moves could have been a consequence of some uncertainties related to the NFP report which is going to come in at 1:30 pm BST. Either way, there were a few economic releases of note and quite the relevant announcement from China which could carry potential huge reverberations going forward.
We mention from time to time that Bitcoin could be treated as a safe haven asset as it’s tended to correlate to the USDJPY (inversely). Although, it could seem to be quite a bizarre relationship, it’s actually worked so far. Thus, it’s worth mentioning that both assets have decoupled lately which might create a trade opportunity if the gap is to be closed.
All eyes today are on the US jobs report which is expected to steal the show during the last session this week. That said, there are a few noteworthy events to watch beyond that which could potentially affect currency pairs as well. Let us come forth with all of them in the above-linked post.