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Dean Popplewell
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Can Draghi Stop The EUR Ride Higher? 
+Dean Popplewell 

Part of the forex short-term market move conundrum was answered yesterday after Fed Chair Yellen's congressional testimony on Capitol Hill. Also comforting capital markets is the glimmer of hope that the Ukraine crisis tension could ease after Putin said that he was pulling troops away from their border. Later this morning, the market gets to consider the remaining two-parts of this weeks forex puzzle from the BoE and ECB rate decision meetings. Will Draghi and his fellow cohorts at the ECB defend the EUR? Will Governor Carney see dissent giving rise to hawkish sentiment? Either scenario should create some volatility, hopefully a bit more than yesterday's major moves.

After a brief choppy period during the Fed Chairs testimony, the market settled down with the mighty dollar ending the day little changed across the G10 board. Ms. Yellen possibly was a tad more dovish with the "rates lower for longer" remaining firmly in place. Equities stateside rode the waves and took the news well with the Dow and S&P's adding +0.7% and +0.6% respectively. The risk-on mentality has so far followed through overnight, egged on by a surprisingly strong Aussie employment report (+14.2k jobs and +5.8% UE) and above expectations Chinese trade data ($18.5B). The Aussie dollar climbed to a fresh three-week high ($0.9386) while its neighbor, the Kiwi dollar, continues to trade nervously from threats by Governor Wheeler of possible RBNZ intervention ($0.8665). For now investors are riding the risk wave, forgoing and paring back safe haven trades and looking for yield, mostly with the 'carry trade.' With most things good there tends to be a disclaimer and that comes in the shape of uncertainties with China trade data over the next few months. Analysts warn that contracts signed at the Cantonese trade show (China's largest) dropped significantly - down -12.5% in orders from major partners. The next few months is expected more accurately the trade situation in the world's second largest economy.

The dollars demise has been blamed on low yields, sovereigns rebalancing and safe-haven trades. However, there is a possibility that the dollar bear may be getting too far ahead of themselves. Low volatility is not necessarily symptomatic of an evolving "downtrend." There is no denying that some dollar dislikes are being influenced by the EUR hovering precariously close to that psychological €1.4000 level. Some by US yields, from mid-long, trading at the lower end of this years range (2.63% and 3.41%) and others by the only "carry" trades that seem to be working are those that are USD funded. For many, the dollar was supposed to be the "go to" trade for this year, however, the "lower for longer" and the lack of inflation pressures has caused many to reverse their long dollar positions. A large percentage of those speculators now sit relatively short. With the DXY sitting near 79, what's the risk reward of easing into long dollar contrarian positions, especially with the ECB about to be called to task as the 18-member single currency approaches supposedly "verboten" territory?

The EUR was a side show yesterday, as the market awaits the ECB's rate decision and in particular Draghi's press conference. Euro inflation remains well below the ECB’s target level, pulled lower in part by the stronger EUR. However, coupled with stronger periphery data this week, suggests a broader economic recovery remains in play. The market consensus is that the ECB will take no action this week and instead will wait for the June meeting, which the fixed-income class is pricing in. If Draghi fails to dent the EUR with dovish rhetoric the €1.4000 barriers could quickly fall. Options traders did see a pick up in demand for €1.4000 strikes this week. Depending on the weak short positions EUR pain threshold stop-losses strategically placed above €1.4050 could be rather attractive. Today's press conference should indicate how determined the ECB is to keeping a lid on the EUR – failing to convince could possible establish another couple of cents on the topside.

In the case of the BoE, Governor Mark Carney and company will be closely watched in light of U.K. unemployment breaching the 7% unemployment threshold to 6.9%. Carney and company at the BoE are expected to leave the bank rate at +0.5% - the difference this time around; the market anticipates a 'dissent' - someone to vote for a hike. What of the pound? The probability of cable trading through its £1.7000 level certainly increases if Draghi fails to stop the EUR trading through €1.4000. However, the lack of clear singles between here and the 2009 peak of £1.7045 has many sitting somewhat neutral. If GBP happens to close above £1.7050 would trigger another bullish signal opening up the possibility of a £1.7300 handle print.
Part of the forex short-term market move conundrum was answered yesterday after Fed Chair Yellen’s congressional testimony on Capitol Hill. Also comforting capital markets is the glimmer of hope that the Ukraine crisis tension could ease after Putin said that he was pulling troops away from their border. Later this morning, the market gets to …
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Brief EUR and GBP Move Waits For ECB And BoE 
+Dean Popplewell 

The mighty dollar slid in early European trading, pushing the pound to its highest level in three years, and the 18-member single currency to its strongest print in two months. The catalyst was a stronger-than-expected U.K. service data print, coupled with similar pockets of results across the eurozone, all supplementing a positive retail sales print (+0.3%). The rising EUR only adds to the dilemma for the European Central Bank (ECB) when it announces its policy rate decision on Thursday. For the Bank of England (BoE), some hawks may take flight.

The U.K.'s latest upbeat survey points to a buoyant economy (the service sector accounts for +75% of the British economy) and is likely to put pressure on the BoE’s policymakers. This morning's U.K. service purchasing managers’ index (PMI) surprised to the upside -- April's 58.7 headline is better than the March print of 57.6 – confirming the fastest pace so far this year, while jobs growth across the private sector also surged. When combined with last week’s manufacturing and construction PMIs, it should help to keep alive expectations that growth during the second quarter could come in close to +1%. The strength of the PMIs’ output and employment readings would suggest that the discussion among policymakers about when interest rates will need to start rising will heat up, especially when one throws in the recent house price gains.

Bullish Data Inflates Euro

The data will support BoE Governor Mark Carney's optimism for the U.K. economy. It could also bring one or two policy hawks to the fore at this week’s Monetary Policy Committee (MPC) meeting. To date, they have been silenced by the unemployment rate-based forward guidance, but with the unemployment rate now below +7%, the "newly refined and qualitative-based forward guidance comes into operation allowing the hawks to express their views." The possibility that the BoE's MPC might actually discuss raising rates is aiding GBP. No one expects the BoE to do anything this week, however the possibility of dissent causes ripples that eventually become waves. Cable has so far managed to scale a fresh 57-month high (£1.6954), allowing the £1.7000 psychological level to remain unlocked for an eventual test. Also aiding the technical analysts’ viewpoint is the upper Bollinger bands that are again pointing higher -- sterling pullbacks have been limited.

The EUR too is being driven higher by upbeat data, especially from the weaker members. So far, the single currency is straddling its two-month high (€1.3928). All of this only adds new complications to the ECB's policy meet this week. Activity in Spain's service sector grew at the strongest pace since before the global debt crisis (April's PMI 56.5 versus 54 in March), and even the Italian PMI revealed a marked improvement (51.1 from 49.5). For the eurozone, the composite PMI (services and manufacturing) delivered a reading of 54 in line with expectations and also a 35-month high. These are all good numbers, allowing the market to push the single currency to breach the psychological €1.3900 handle.

The good, however, does provide a problem for ECB President Mario Draghi and company. Inflation in the eurozone has fallen well below the ECB's target level, pulled lower in part by the stronger EUR, and the rebound so far has been mild. This alone sets the scene for further easing measures (interest rate cuts or quantitative easing), but this morning's PMIs would suggest that a broader economic recovery remains in play. The ECB cannot afford to jump the gun and react. Doing so could potentially cut off any growth traction that is currently unfolding. The market consensus is that the ECB will not take any action this week. In fact, the fixed-income traders have pegged the Bank’s June meeting for when Draghi will take action. Overall, some further gains are possible for the EUR, but they are likely to remain limited until investors get guidance from the ECB.

Yellen Testimony Will Shift Markets

The dollar is having a tough go of it, despite solid prints from the Institute for Supply Management data (55.2) yesterday and stronger employment last week (unemployment, 6.3%). The Federal Reserve's forward guidance is keeping a lid on rate-hike expectations. This is allowing the dollar to be treated with "benign neglect" – the buck sells off even with better U.S.-centric data. The flipside is allowing risky assets and higher yielding currencies to perform better. The market continues to look to the Fed for guidance – tomorrow Janet Yellen testifies before the Congress Joint Economic Committee on monetary policy and the U.S. economic outlook, and then before the Senate Budget Committee on Thursday. The Fed's chief may be forced to clarify her thoughts on the economy since dodging previous opportunities to do so.
Investors did get to see a forex move, however it maybe fleeting as the market now waits for Central Bank guidance. The mighty dollar has slid in early European trading, pushing the pound to its highest level in three-years and the 18-member single currency to its strongest print in two-months. This morning’s catalyst is the …
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Week In FX Europe – After NFP, ECB, Russia and the Dollar In Focus +Dean Popplewell 

Friday's NFP surprise (+288k and +6.3% UE) has managed to temporarily nick the EUR bull, but not enough to break the pair from the broad range (€1.3775-1.3880). Geopolitical concerns aside, next week's rate decision at the ECB (May 8th) are now in focus. Market consensus expects Euro monetary policy to remain steady as recovery unfolds.

Earlier this morning the final manufacturing PMI reading for the region came in at 54.1, slightly down from the flash reading of 54.2 and better than the 53.7 seen in March. Collectively the PMI's carry a mixed message for Draghi and company. Activity continues to pick up, showing expansion outside Germany, with France, Italy and Spain seeing their final print above 50 (expansion territory). A concern to many was the fact that manufactures cut their prices for a second consecutive month - a worrying development for Draghi and company. The issue for the ECB is not a slow Euro recovery, but the persistence of "low" inflation that despite this months bounce (below expectations and above the March print - 0.7%) remains a priority issue for Euro policy makers.

Because of benign Euro inflation situation the market has only attached a small probability to the ECB actually doing anything to monetary policy next week - the fixed income traders are more confident in pricing in an easing move in June instead. A rate cut or negative deposit rates are something that the market expects then with QE on the cards for later in the year.

Obviously, any additional monetary easing by a G7 central bank will create market volatility - creating risks and opportunities for investors. Until then, the forex market is beholding to the varying trading ranges intermittingly been broken by geopolitical issues. After Friday's NFP headline the dollar found only brief favor with investors - both US treasury yields and the dollar fell on news reports that Russia has called for an emergency meeting of the UN security council.
Friday’s NFP surprise (+288k and +6.3% UE) has managed to temporarily nick the EUR bull, but not enough to break the pair from the broad range (€1.3775-1.3880). Geopolitical concerns aside, next week’s rate decision at the ECB (May 8th) are now in focus. Market consensus expects Euro monetary policy to remain steady as recovery unfolds. …
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Little Interest In EUR GBP Or JPY Until NFP 
+Dean Popplewell 

May day holiday's throughout much of mainland Europe is hurting risk appetite and condemning some major currency pairs to another tight trading range. The 18-member single currency is wallowing in self-pity, a tad shy of the psychological €1.3900 handle. There was a bid tone certainly set by Asian interest in their session, as they went looking for weak stop losses nesting in the in high 80's. However, ever since then, interested parties have been waiting for today's stateside session to commence. Hopefully the release of initial claims and ISM will be capable of sparking some life back into this forex market.

Nevertheless, if that is not the case, then investors from the varying classes should not expect asset prices to stray too far away from current levels at least until the release of tomorrows "grandfather" of fundamental data - non-farm-payrolls (market consensus +207k, +6.6% UE rate). For the EUR and not a surprise to many, vols are again pushing their lowest levels in seven-years. Even today there are reports of good sized optioned related 1.3890 interests - this should keep the EUR relatively anchored, at least until the ISM print at 10am EDT.

Despite the markets lack of interest, the EUR has continued to strength against the dollar, rising +0.2% to a three week-high, just shy of €1.39. The common currency has been better, supported somewhat by yesterday's Euro-zone inflation headline print bouncing back from its March's lows. This has dampened expectations of further stimulus from Draghi and company being introduced at next week ECB meet. The fixed income traders are pricing in an easing move by the central bank in June.

Sterling remains a currency beast with its own agenda it seems. The release of stronger than expected UK manufacturing data this morning has managed to propel the pound to new heights for this year. April's PMI rose to 57.3 from 55.8 - boosted by an increase in domestic and overseas orders. Of late, stronger UK data continues to be rolled out and this latest sign of strength has pushed Cable to extend gains north of the psychological £1.69 handle to £1.6919. If the UK economic releases continue along this vein then Carney at the BoE will surely be the first amongst the major developed countries to tighten monetary policy - another potential positive for the pound.

On the flip side, some speculators at this stage may have gotten too long of GBP. This morning's strong UK manufacturing PMI has only been able to push the pound "modestly" higher from yesterday's closing levels. Sterling has in fact only managed to appreciate +1% since last month's strong jobs growth fuelled rate hike speculation mid-last month. "Buy the rumor sell the fact" mentality of specs could see a major correction with any negative surprises. Expect individuals wishing to add to their GBP longs positions at such lofty prices to act swiftly to any sterling negative news. According to the techs, they see significant technical resistance at the 100-MMA, £1.6970. The market faces a major psychological hurdle at £1.7000. Do not be surprised to see more investors considering bucking the trend and sell into this rally, looking to maximize the "best bang for their buck."

Despite risk taking trying to remain in vogue, investors are focusing on the distinction between reductions in monetary stimulus (ECB and BoJ) as opposed to a still uncertain tightening cycle that is expected to follow from some of the G7 members (FED and BoE). So far, policy makers who have been implementing QE have succeeded in removing volatility from the market place and across all asset classes (forex, bonds or equities.) More volatility is required to attract more investment opportunities and the only trigger for higher volatility will only occur with there is a change in CB monetary policy. Nevertheless, volatility will likely remain low, and when it finally does rise a gradual change process of Central Banks will guide it - it should not be a rapid change. Taking CB out of the equation, investors have to rely mostly on geopolitical tensions or an EM slowdown to occur, only then will this lead to a rise in market volatility.

This morning's US weekly initial jobless claims unexpectedly rose, +14k to +344k (nine-week high) vs. expectations of a -10k fall to +319k. This was the third consecutive weekly increase and happens to push the four-week average to +320.1k. Analysts note that the data will do some "damage to the short-term trend but the broader statement of improving labor markets remains the same." With this mornings April ISM manufacturing PMI print coming in close to the market forecast (54.9) investors will mostly have to wait for tomorrows NFP for market insight.
May day holiday’s throughout much of mainland Europe is hurting risk appetite and condemning some major currency pairs to another tight trading range. The 18-member single currency is wallowing in self-pity, a tad shy of the psychological €1.3900 handle. There was a bid tone certainly set by Asian interest in their session, as they went …
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"Reality TV coverage does not get any better. It's tantalizing close, or so capital markets are being led to believe, a halt to the US fiscal standoff is within the Senates grasp."
Reality TV coverage does not get any better. It’s tantalizing close, or so capital markets are being led to believe, a halt to the US fiscal standoff is within the Senates grasp. If so, they now must race the clock to sell the plan to lawmakers before U.S. borrowing authority runs out later this week […]
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+Dean Popplewell speaks to +Reuters about how factors such as energy independence could have a more pronounced effect once central banks start to remove stimulus
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Will Yellen Aid The Dollar Today?
+Dean Popplewell 

Investors continue to search for solid reasons for some of the current forex market moves. Sterling and EUR has been easy as investors cite yesterday's somewhat surprising PMI headline prints, however, the dollars move is more of a mystery. Its change of late cannot be explained by rates or even the reversal of safe-haven trades alone. Nonetheless, the fact that long-end yields of the US curve continue to fall, despite building evidence that a strong economic recovery is underway, seems to be undermining investor confidence in the mighty dollar. In fixed income, long US product is trading more like a commodity, with demand for product smothering supply and artificially weighing even more on yields than the Fed's QE intentions. Dealers have cited other reasons for the dollar demise and have noted central bank and pension fund buying – rebalancing of reserves and portfolios. All good enough reasons, but the market wants more. Investors will look stateside today and focus on Ms. Yellen and the US 10-year auction for dollar direction.

Expect the market to be glued to the Fed heads congressional testimony to see if she has a message that alters the Fed's monetary policy. Falling US yields are hurting the dollar, and certainly making equity markets a tad more nervous. So far the Federal Reserve's forward guidance is keeping a lid on rate-hike expectations and allowing the dollar to be treated with "benign neglect." After avoiding a press conference at last week's Federal Open Market Committee meeting, and mostly skipping monetary policy themes in a speech last Thursday, Ms. Yellen may be forced to clarify her thoughts on the US economy. The market will be looking for anything in reference to last week's supposedly strong jobs report. For others, they will be watching today's US $24b 10-year note auction for clues. US 10's are straddling +2.60% yield, close to the bottom of a range it's been in since January. Traders will want to see if the market needs to make a concession to attract buyers.

Ms. Yellen is not the only central bank to influence market direction this week; tomorrow is the ECB and BoE's turn. Monthly interest rate decisions for both central banks could make it rather interesting for investors. In the case of the BoE, Carney and company will be closely watched in light of UK unemployment breaching the 7% unemployment threshold to 6.9% - this could puts the discussion of rate hikes on the table, giving rise to possible dissent amongst the ranks on the MPC.

For the ECB all good data of late provides a problem for policy makers. Euro inflation is well below the ECB's target level, pulled lower in part by the stronger EUR, and the rebound so far has been mild and in theory sets the scene for further easing measures. Nevertheless, stronger PMI prints this week suggests a broader economic recovery remains in play. Draghi and company cannot afford to be too aggressive in either direction as the balance of growth is precarious. The market consensus is that the ECB will take no action this week and instead will wait for the June meeting, which the fixed income class is pricing in. Unless there is a surprise from Yellen – remember the six-month statement in March – EUR and GBP moves are likely to remain limited until investors get guidance from either Central Bank.

Assuming the EUR remains close to today's option expiries (€1.3930), the single currency has the potential to test the highly touted psychological €1.4000 level if the ECB stand pat tomorrow. This level was a previous print that the ECB defended with increased rhetoric. A scarcity of expiries, low volatility and minimal spec longs suggest that there could be little to prevent a clear break higher. Momentum trades through key resistance and support barriers tend to be followed up with a good size move. However, the danger is the proximity to this key level – it could provoke an unexpected and aggressive response from the ECB, which in that scenario could create a sizeable pullback. Either way the market is surely to remain tentative when strapping on positions, as they would prefer to be flexible if and when they are required to reverse direction. If the ECB defends, the next question will be how low can the EUR can go? That will depend on what arsenal ECB policy makers will be using on the next go around.
Investors continue to search for solid reasons for some of the current forex market moves. Sterling and EUR has been easy as investors cite yesterday’s somewhat surprising PMI headline prints, however, the dollars move is more of a mystery. Its change of late cannot be explained by rates or even the reversal of safe-haven trades …
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EUR Shows Signs Of Strength This Week
+Dean Popplewell 

Strong nonfarm payrolls (NFP) data did indeed surprise last Friday, completing a week of whipsaw data that also featured a softer-than-expected U.S. gross domestic product (GDP) report. However, the bigger surprise was the dollar weakening in turn crushing many expectations. In the end, the strong unemployment headline was not enough to change the tune that capital markets have been playing for some time. If anything, it confirms that the weather-related bounce back is happening. The key to the buck's weakness lies with the Federal Reserve but it's going to take some time to gauge the underlying performance of the economy. That provides Fed Chair Janet Yellen and company breathing room and with wage inflation so tame, there is no reason for the Fed to change its "lower for longer" message. However, with Q3 (the third installment of quantitative easing) on the table, the dollar has problems.

The boost to market sentiment provided by NFP data did not last long. Global equities start the week on the back foot, as investors digest the latest sign of weakness from China's manufacturing sector. Investors are also keeping an eye on the spreading conflict in Ukraine. With London on a public holiday, trading will be somewhat subdued. Nonetheless, a disappointing Chinese HSBC manufacturing purchasing managers' index for April is not helping (48.1 versus 48.3). This morning's print continues to defy the steadying trend in official stats; however, not all is bad news. Despite the final headline being downgraded, there were signs of stabilization in total orders and production, with both indices rising month-over-month for the first time in 12 months. This tidbit of positivity would suggest that Beijing's mini-support measures are helping to prevent a steeper downturn in Chinese GDP.

German Bunds, U.S. Treasurys Climb

The accumulations of various geopolitical concerns and economic disappointments have safe-haven assets again in demand. Bunds and U.S. Treasurys, which dipped briefly following the NFP report but quickly recovered, have managed to inch higher this Monday as the market heads stateside. Even the yen is trading sub-¥102, while commodities -- especially gold -- has found some of its long lost support striding toward $1,315 in the late European session.

Similar to the U.S. yield curve, the two- and 10-year German Bund spread is just holding above its +131bps low. The curve is certainly flatter after last week's high print of +135bps. The market expects stop losses to be an issue on a break of this lower level. However, there is an outside chance of a full return to the +115bps low from 12 months ago. The difficulty, as with its transatlantic counterparty, has to do with demand. U.S. Treasurys and German Bunds require a fresh bout of bullish sentiment, which is difficult at such low yields - the 10-year Bund is currently straddling +1.45% and eyeing +1.40%, while its U.S. counterpart is trading at +2.58%.

Yellen Testimony in Focus

From a currency perspective, it's a similar situation. There are no surprises with the EUR again trading steady early Monday morning though for many, technical analysis data indicates a strong likelihood the 18-member single currency will rally versus the greenback this week. The EUR is supposed to be firmly supported by the Bollinger upward channels on both the daily and weekly charts - at €1.3685 and €1.3861, respectively. This would suggest to any EUR bull that buying the single currency on dips is the way forward in the short term. However, through these support levels expect many 'long' positions to begin seeking an exit. The EUR uptrend should continue to guide the bulls toward that psychological €1.4000 channel -- a level where the European Central Bank is expected by many to become more "vocal." For the time being, the trend remains your friend.

Other highlights this week will be the Aussie rate decision on Tuesday, where no change is expected. The Reserve Bank of Australia is expected to closely monitor the jobs numbers Down Under among signs that the economy there is picking up. On Wednesday, Yellen testifies before the Congress Joint Economic Committee on monetary policy and the U.S. economic outlook. After avoiding a press conference at last week's Federal Open Market Committee meeting, and mostly skipping monetary policy themes in a speech on Thursday, the Fed's head may be forced to clarify her thoughts on the economy. The market will be looking for anything in reference to last week's supposedly strong jobs report.
NFP did surprise, completing a week of whipsaw data – softer than expected GDP report followed by very strong employment data. However, the bigger surprise was the dollar weakening despite crushing many expectations. In the end the unemployment headlines being stronger has not been enough to change the tune that capital markets have been playing …
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What Forex Can Expect From April's NFP?
+Dean Popplewell 

It's the first Friday of a new month and that means only one thing - its non-farm payrolls. All eyes will be front and center when April's US monthly jobs report is released in a few hours. For a period or time the market will have forgotten the developments in the Ukraine. Once the impact of the US release is over many will return to cover the possibility of European event risk over the weekend before saying adieu to this Euro holiday shortened week.

The NFP headline print will round off a week that happened to report the second worst quarter for US economic growth since the supposed recession ended nearly five full years ago. Every employment report is touted for various reasons as being important and this one is no different. Q1 was a disaster in terms of growth and many investors would be asking if this is a start of sustained economic weakness or whether we will see strong acceleration in Q2.

No matter what, let's hope this morning's non-farm payroll print gets to create some volatility in forex-land. Being confined to endless tight trading ranges is making the life of an FX trader rather dull and for some even difficult to make a living. Dealers and investors thrive on volatility. However, market odds favor a print that being close to expectation will send forex traders back to the 'new' reality - confined trading ranges, which seem to be the new norm created by currant central bank monetary policy.

Many investors and dealers alike are optimistic on the headline print - the consensus is +218k for payrolls and +6.6% for the unemployment rate. A print north of +200+ is possible, especially after the weather started to become less severe in mid-February. It was then that jobless claims saw a big improvement through the mid-April employment report survey period. This would suggest a significantly reduced pace of firings recently. With layoffs declining and hiring rates somewhat steady (reference the ISM survey) is probable proof enough that US net job growth has accelerated. This should push for a temporary pickup in NFP to a pace somewhat above the recent trend just above +200k a month.

When it comes to the report do not just look at the headline print - the details and backwardation is just as important. Strong hours worked in March in manufacturing (levels only exceeded during WWII) and construction (workweek improved a full hour) would suggest a need to step up hiring in those sectors, while service and leisure will be boosted by the weather. Many analysts are leaning towards an unemployment rate improving because of job growth improving being combined with a steady to marginally higher labor force participation rate - +6.6%. However, as per usual the US participation rate remains the wildcard.

Any optimistic data will favor the dollar somewhat- the surprise support for the EUR, GBP or JPY will come from a much weaker headline or deeper revisions. Otherwise, something close to expectations and we will have a market keen to shut up shop early with much of Europe having already taken a long weekend and Japan about to begin one. The new typical Friday will not have many individuals going out on a limb for various political and event risks - so far, Ukraine military operation have had a limited impact on European markets.

Next week the market would prefer to contest the possibility of ECB officials most liking having to talk the EUR down from the psychological €1.4000 level, with the likelihood of sterling breaching £1.7000 and JPY infiltrating sub ¥102 territory when liquidity is back to near normal conditions - a late Friday in Europe with half manned desks does not seem like the ideal dealing scenario!
It’s the first Friday of a new month and that means only one thing – its non-farm payrolls. All eyes will be front and center when April’s US monthly jobs report is released in a few hours. For a period or time the market will have forgotten the developments in the Ukraine. Once the impact …
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Week in FX Asia - Not All Dull And Boring In China
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Director of Currency Analysis and Research at MarketPulse
Introduction
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2007, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.

Leverage trading is high risk and not suitable for all. You could lose all of your deposited funds.

Articles are for general information purposes only and are not investment advice or a solution to buy or sell any investment product. Opinions are those of the authors and not necessarily those of OANDA, its officers, or its directors.


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