Following a day of frantic activity, markets are calm as they await today’s main ticket – Non Farm Payrolls. The US dollar index has a slight positive bias after significant gains made yesterday.
The GBP/USD is unchanged so far after the Bank of England raised rates as expected, but expressed enough caution to keep a lid on market expectations. The 1.3000 support levels are holding for now – just. The EUR/GBP experienced volatility, ultimately ending higher as the euro also came under pressure throughout the day. The GBP/JPY also felt the pressure, closing at its lowest levels since June.
Other dollar pairs are mixed, with the AUD/USD making small gains following yesterday’s selling, while the EUR/USD is coming in for some follow on selling.
The USD/CHF is making further gains as markets leave the Swiss franc for the safety of the dollar.
The yen pairs are mixed, with the AUD/JPY and USD/JPY making small gains while the EUR/JPY and GBP/JPY are on the back foot.
Gold remains under pressure as demand for the dollar trumps any safe haven interest.
UK services PMI are at 09.30.
US Non Farm Payrolls are at 13.30, released with the unemployment rate and average hourly earnings.
Canadian trade balance is released at the same time.
US ISM non-manufacturing PMI is at 15.00.
Gold continues to struggle in the face of the strong US dollar, making bearish bets attractive. The next significant support level is around $1180, making this an attractive target for a bet.