Daily thread to exchange ideas and to share your thoughts
Happy Friday, everyone! Hope you're all doing well as we get things going here in the European morning session. It's been a quiet start to proceedings so far with little notable movements across major currencies.
We're in the typical pre-non farm payrolls phase so the lull period we're experiencing isn't much of a surprise as trading ranges remain tight as we begin the session. Looking ahead, we'll have UK services PMI data and Eurozone CPI data to help provide some market catalysts but generally, the focus is on the US jobs report that is to come later today.
As such, the sluggish sentiment we're seeing here should prevail throughout the European morning. What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
This is my brief take on the US jobs report later:
After the Fed message on Wednesday, quite frankly I don't see much prospects for the US jobs report later to give markets with a fresh perspective of what is going on in the domestic economy. Labour market conditions remain tight and a strong headline print on non-farm payrolls isn't going to offer us anything new. Meanwhile, wages data has been relatively decent as of late and if it comes in within expectations, it isn't going to change the inflation outlook all too much as well.
For me, the data is more like a litmus test whereby everyone is expecting it to hold decent/solid before going about their business to wrap up the week. The only thing to be wary about is any major surprises to the downside in the data, and that's the only thing I can see that could rattle markets before the end of today.
