With global growth concerns dominating the headlines, the monthly employment report may be overshadowed today unless it diverges dramatically from the consensus for a 70,000-75,000 drop. The betting at this stage is that the US led the world into the present slowdown and that it will lead it out, giving the dollar an edge.
European headlines remain uniformly dour; German and Spanish industrial output both tumbled, ECB officials continue to fret over inflation though cracks in their solid front are beginning to appear as Austria’s Nowotny says inflation has peaked. Commodities are offered on the global growth fears, and equities are lower as well. That risk-averse environment is supporting the JPY against all counterparts. EUR/JPY targets 149.22 and 147.50 in the days ahead while EUR/USD targets the old all-time high at 1.3665.
