Soft headline NFP, US-China trade threats.....>

FOREX: Soft headline NFP, US-China trade threats continue to pressure the USD

- The release of soft US headline jobs data (103k vs MNI median 195k) was

initially countered by strong wage growth numbers (AHE 0.3% m/m as expected)

with Usd/Jpy held to a narrow Y107.13-40 range. The USD remained choppy

following remarks that China is ready and won't hesitate to retaliate.

- As US equities opened in negative territory, UST yields touched session lows

adding weight to the dollar. Usd/Jpy moved through Y107.00, before another push

lower in equites (DJI -600) pressed to Y106.83.

- The risk-off China comment pressured Eur/Usd to $1.2220, but was quick to pare

losses amid the softer USD tone. Demand from model names extended to $1.2290,

before fading.

- Momentum type accounts were the main drivers in GBP, cable briefly made a show

above $1.4100, Eur/Gbp touched lows of Gbp0.8701.

- Usd/Cad printed 6-week lows of C$1.2732 after the strong Canadian jobs release

- Fed's Powell in his economic outlook did not specifically comment on the March

employment report but did say gradual rate hikes balance risk. No react to USD.