The moves between the major dollar currency pairs are around 0.1% or less at the moment. This illustrates the more hesitant mood that is gripping traders in European morning trade. USD/JPY was again the most volatile pair, dipping to a low of 143.05 before rebounding to around 143.50 levels now. But apart from that, the moves so far today are extremely cautious as traders watch key US data later.
US futures are flat and 10-year Treasury yields are also now virtually unchanged at 3.768% on the day.
Overall, this all suggests that market participants are eagerly awaiting US data before committing to anything. We have ADP employment change, weekly jobless claims, and then ISM services PMI, all of which are on the docket.
After the Bank of Canada’s reaction and yesterday’s jobs announcements, expect markets to start moving more vigorously after today’s data release. And all of this will culminate, of course, with tomorrow’s nonfarm payrolls report.
For now, the wait continues. The ADP roulette will be next, in about two hours.
By the way, gold is also worth keeping an eye on. The precious metal is up 0.8% at $2,515 today and looks set to try again to pursue a firmer breakout.
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