It's jobs Friday and and aside from the yen, the FX market has mostly traded flat ahead of the release. The pivot trade on a soft number has been what everyone has been waiting for in the past few months but now the market has front-run the data. Yields have tumbled and stocks have soared.
With that, the market is now in a much more balanced spot and -- if anything -- there's a skew towards buying the dollar on strong data. Don't forget that jobs are a lagging indicator and there hasn't been much of an indication of softness outside of tech and some manufacturing.
Along with the US report, Canadian employment is due at the same time and expected up 5.0K after last month's sensational +108.3K reading. I'd be cautious of some give-back.
It's also the final day before the Fed blackout today so we'll be getting a steady stream, including Barkin and Evans.
For more, see the economic calendar.
