NORGES: RATES PROBABLY AT CURRENT LEVEL QUITE SOME TIME

RATES MAY NEED TO BE ON HOLD LONGER THAN ENVISIONED: NORGES

MNI: NORGES BANK LEAVES RATES UNCHANGED AT 4.50%

MNI WATCH: CNB Seen Cutting 50Bps to 5.25%, Signal Slower Pace

MNI China Daily Summary: Tuesday, April 30

MNI BRIEF: China To Keep Tackling Risks In Real Estate, Debts

MNI: BAKER HUGHES US RIG COUNT 605; OIL RIGS 499; GAS RIGS 102

BoE Data Watch

RBA Data Watch

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD Pressure Extends Following NFP, Weighed By Financial Stability Concerns

FOREX
  • Despite the February change in US non-farm payrolls beating estimates, a set of weaker components within the employment report was met with immediate USD selling. With financial stability concerns providing an uncomfortable backdrop, the greenback extended the post-Powell reversal with the USD index looking set to close in line with last week’s close.
  • With the Silicon Valley Bank situation in the back of trader’s minds, the weak details within the payrolls report saw an immediate gap lower for USDJPY from around 136.70 to 136.00. Any bounces remained small, and the resulting hours saw the pair fall to fresh lows for the week at 134.12.
  • The pair has now traded well below support at 135.37 and has briefly shown below the 50-day EMA, which intersects at 134.23. A clear break of this average would strengthen a bearish threat.
  • With the flight to quality in full force, the Swiss franc was a key beneficiary in G10 FX on Friday, with USDCHF posting 1.25% losses on the day. The Euro and GBP were also able to capitalise on the softer greenback, however, the more risk sensitive Aussie relatively struggled, posting 0.14% losses against the dollar, with AUDJPY weakness mirroring the moves in equity markets.
  • A further extension of this equity weakness approaching the close provided some moderate relief for the USD index, which looks set to close around 0.7% weaker on the session.
  • The key risk events next week are the US CPI report on Tuesday and Thursday’s ECB meeting.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.