The G-10 rundown
USD – the USD under pressure here almost across the board (notably exception the JPY, which is even weaker) and good US data today could ironically help to continue to drive a weaker USD.
EUR – EURUSD bears uncomfortable if we can’t hold below yesterday’s close on the close of the week today, fears of a dovish ECB next Thursday notwithstanding.
JPY – traders fleeing safe haven on the recovery in risk sentiment, making the JPY one of the weakest currencies at the moment. The 107.00 are in USDJPY is rather important for whether USD or JPY is weakest.
GBP – the latest idea for the parliamentary opponents to Boris Johnson is to aim for late October for UK elections, while Johnson holds out hopes for the mid-October poll. GBP in a holding pattern.
CHF – the franc looks far too strong given where markets are otherwise – room for consolidation in EURCHF back to 1.1000-1.1100.
AUD – AUDUSD challenging the first important resistance around 0.6830 ahead of the US jobs report, but plenty of more wood to chop for a full chart reversal (closer to 0.7000 needed.)
CAD – more open minded for the potential to challenge 1.3000 if risk sentiment continues to improve from here.
NZD – upstart NZD has more room to run versus the USD before running into major resistance versus the USD – starting with 0.6485-0.6500 area.
SEK – the Riksbank helping SEK to the upside by maintaining its bias to hike, but the backdrop of improved sentiment doing the heavier lifting and a continuation of yesterday’s developments could help EURSEK finally put in a heavier consolidation, as far as 10.50.
NOK – EURNOK finding more separation from 10.00, but the sell-off doesn’t pick up more significance until working through 9.90 and really more like 9.80-9.75. The backdrop move away from safe havens is supportive here, as long as it lasts.
Upcoming Economic Calendar Highlights (all times GMT)
- 1030 – Russia Central Bank Rate Decision
- 1230 – US Aug. Nonfarm Payrolls Change
- 1230 – US Aug. Average Hourly Earnings
- 1230 – US Aug. Unemployment Rate
- 1230 – Canada Aug. Employment Data
- 1400 – Canada Aug. Ivey PMI