Release of weaker than forecast US ADP........>

FOREX: Release of weaker than forecast US ADP data, placing a dampener on

expectations for Friday's NFP release, weighed on the USD, and allowed USD/JPY

to extend its corrective pullback away from Wednesday's high of Y111.76 to

Y110.75. The react pressure on the USD took EUR/USD to an extended recovery high

of $1.1655 but upside momentum quickly faded as JPY strength drove EUR/JPY lower

taking EUR/USD back to $1.1624, with added sales through the London fix taking

it on to $1.1606.

- Cable consolidated Wednesday's recovery with a firm tone, remaining above

$1.2900, though held off Wednesday's high of $1.2983. 

- Riksbank left policy on hold at -0.50% and in the accompanying statement

pushed back its rate hike forecast to 'in Dec, or Feb'. Dovish undertones were

also noted.

- CAD trades on the defensive as market awaits outcome of NAFTA negotiations. 

- Friday data begins with Germany IP, outlook lowered due to this morning's

weaker than forecast Germany Factory Orders. EU Q2 GDP also due but in the

shadow of the US Employment main event.