As the dust settles following this morning’s improved US employment report, a few themes have become clear.
- The buck is firmer across the board
- The JPY has weakened dramatically across the board
- The EUR is under-performing
- Commodity currencies are off their highs, but underpinned
- The pound is a bit of a wild card. It trades at the highest levels of the year against the JPY and looks set to close above the June highs at 162.57. At the same time the pound looks to have failed a test of strength by falling back after a probe above 1.7000. Goldman Sachs has turned negative.
- Emerging markets are underpinned as both the US and China look like they may be in for an economic rebound.
This is providing loads of opportunity as the deck-chairs are rapidly rearranged. That should continue early next week as well.
