Entering into US session, European majors are generally the weakest ones despite some positive data. UK PMI services rose back above 50 in April. Eurozone CPI and core CPI accelerated more than expected. But Euro and Sterling are so far the weakest ones for today. On the other hand, Canadian, Yen and Dollar are the strongest ones, and it’s hard to tell who’s better yet.
Non-farm payroll report will be the main focus today and will be released within an hour. Any upside surprise, in particular in wage growth, will further lower the chance of a Fed rate cut. Dollar and treasury yields should be boosted in this case naturally. The main question is whether stocks would indeed react negatively to a good set of NFP numbers. If that happens, Yen could jump together with Dollar, with EUR/JPY taking out 124.09 temporary low. AUD/USD could finally make up its mind to get rid of 0.7 handle decisively.
In Europe, currently:
- FTSE is up 0.78%.
- DAX is up 0.35%.
- CAC is up 0.27%.
- German 10-year yield is up 0.0091 at 0.041, staying positive.
Earlier in Asia:
- Hong Kong HSI rose 0.46%.
- China Shanghai SSE rose 0.52%.
- Singapore Strait Times dropped -0.03%.
- Japan stayed in 10-day holiday.
