It is all about the US non-farm payrolls today
We're going through the typical pre-NFP lull again and that is likely to stretch on to European trading with market participants honed in on the jobs report later.
There will be added focus on wages and the unemployment rate outside of the headline figure but overall, this shouldn't be a report that makes or breaks the Fed's view.
Powell & co. will ultimately decide by themselves how much of a hawkish tilt they would wish to share in the months ahead and that's not going to rest on one single jobs report, although this will help in trying to allow them flexibility in doing things I guess.
Nonetheless, with FX and the dollar on the edge of its seat from a technical perspective, this could be what is needed to nudge things along before the weekend approaches.
EUR/USD continues to hang near the 18 June low @ 1.1847, testing waters just below that since yesterday. Meanwhile, USD/JPY has moved up to its highest levels since March last year but faces resistance around 111.50-71 for the time being.
GBP/USD has also broken below 1.3800 to its lowest since mid-April with there being little technical support until the double-bottom in March and April near 1.3670.
Elsewhere, AUD/USD has fallen to its lowest levels this year but there is support from the 21 December low @ 0.7462 while USD/CAD is contemplating a push further away from its 100-day moving average with the June highs @ 1.2480-87 in focus.
0900 GMT - Eurozone May PPI figures
Prior release can be found here. A lagging and proxy indicator of price pressures but estimates are for a continued tick higher, which reaffirms rising cost pressures in general - largely due to supply constraints still persisting.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
