This morning, the dollar index has a positive bias ahead of today’s Non Farm Payrolls.
The AUD/USD is dropping for its fifth straight day as investors weight up contagion from the Chinese economy and poor domestic economic data.
The EUR/USD and GBP/USD are on the back foot, erasing a small part of yesterday’s gains. Both remain rangebound on the week amid volatile trading. The EUR/GBP is nudging higher after the euro held the advantage yesterday.
The USD/CAD is holding gains and pushing to its highest levels since June 2017. Russia holding oil production is softening general prices for crude and hurting the Canadian economy.
By contrast, the USD/CHF continues to struggle despite bouncing off the 0.9900 level yesterday.
The yen pairs have a positive bias, with the USD/JPY nudging higher. The AUD/JPY continues to struggle, losing ground for the fifth day in a row.
Today’s highlight is US Non Farm Payrolls at 13.30, released alongside average hourly earnings and the unemployment rates.
Canadian employment change and unemployment data are also released at 13.30.
At 15.00, we have preliminary consumer sentiment.
FOMC member Brainard speaks at 17.00.
Today’s NFP will produce substantial volatility, but there’s no getting away from the strength of the general trend.