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FOREX: Greenback on the Backfoot as Markets Await Deluge of Jobs Data

FOREX
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  • The USD starts the session on the backfoot, drifting slightly lower against all others in G10. The action picked up throught the European morning on a slight pick-up in volumes through a phase of EUR/USD buying. Currency futures saw a small, but notable, uptick in activity, but was largely isolated to EUR/USD and GBP/USD - with no leading move in US rates or equity markets.
  • Options interest clustered in EUR/USD just above spot - with the most notable strikes today including: $1.1075-90(E3.0bln), $1.1100(E1.1bln), $1.1120-25(E1.6bln), $1.1145-55(E2.6bln), $1.1180-00(E2.1bln).
  • Reversing a small part of yesterday's weakness, Scandi currencies are recovering slightly, but the broader trend remains higher in the short-term as high beta and growth-proxy currencies remain sensitive to a US rate shock, and S/T DMAs remain in bull mode for both EUR/NOK and EUR/SEK.
  • A stacked session for data should keep markets on edge Thursday, with participants looking to glean any final clues on the state of the US labour market ahead of tomorrow's labour market report. ADP employment change, Challenger job cuts, weekly claims data, ISM Services and the final services PMI for August. 
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  • The USD starts the session on the backfoot, drifting slightly lower against all others in G10. The action picked up throught the European morning on a slight pick-up in volumes through a phase of EUR/USD buying. Currency futures saw a small, but notable, uptick in activity, but was largely isolated to EUR/USD and GBP/USD - with no leading move in US rates or equity markets.
  • Options interest clustered in EUR/USD just above spot - with the most notable strikes today including: $1.1075-90(E3.0bln), $1.1100(E1.1bln), $1.1120-25(E1.6bln), $1.1145-55(E2.6bln), $1.1180-00(E2.1bln).
  • Reversing a small part of yesterday's weakness, Scandi currencies are recovering slightly, but the broader trend remains higher in the short-term as high beta and growth-proxy currencies remain sensitive to a US rate shock, and S/T DMAs remain in bull mode for both EUR/NOK and EUR/SEK.
  • A stacked session for data should keep markets on edge Thursday, with participants looking to glean any final clues on the state of the US labour market ahead of tomorrow's labour market report. ADP employment change, Challenger job cuts, weekly claims data, ISM Services and the final services PMI for August.