:: United States Dollar: The Dollar has strengthened throughout the last 24 hours. Less hawkish than expected ECB tone, weaker than expected US ISM non-manufacturing data, and a poor show in UK Services PMI data the main culprits. A US Government Official was on the wires yesterday too stating that unemployment would get worse, all of which has seen risk sold over the last 24 hours. GBP/USD slipped to 1.6523 but has made a quick recovery early on this morning. News just in - a Chinese Regulator stated a couple of hours ago that they will diversify among major currencies and other high quality assets, although the USD status as the main reserve currency won't change. In any case it has given investors the excuse to take profit and square their book in the run up to the much anticipated US Nonfarm Payrolls data due this afternoon.
- We expect a range today in the GBP/USD rate of 1.6480 to 1.6740
EUR/USD fell yesterday following the ECB Decision to leave interest rates unchanged at 1%. The tone of Trichets accompanying press conference was pretty much what many had expected, outlining the ECB’s unwinding plans but markets, fickle as ever, decided to turn risk averse again, although granted only mildly. EUR/USD slipped to 1.5040 and opens this morning slightly higher at 1.5080. And guess what, GBP/EUR has done very little and opens this morning at 1.1010.
- We expect a range today in the GBP/EUR rate of 1.0940 to 1.1120
:: Aussie and Kiwi Dollars: AUD/USD has fallen from .93+ to .9220 in the last 24 hours. NZD/USD has gone the same way. It fell from .7280 to .7200. It opens this morning at .7240. It is seemingly all down to profit taking ahead of NFP data from the US this afternoon. Markets are generally expected to trade quietly in the run up to this number, which has the potential to cause volatility as markets come to a week close. GBP/AUD has done little, except for falling to 1.7840 yesterday. It opens this morning at 1.7930. GBP/NZD is slightly higher today at 2.2925.
- We expect a range today in the GBP/AUD rate of 1.7820 to 1.8190
- We expect a range today in the GBP/NZD rate of 2.2810 to 2.3140
:: Data Releases:
AUD: No data due for release today
EUR: No data due for release today
GBP: No data due for release today
NZD: No data due for release today
USD: NonFarm Payrolls, Unemployment Rate, Avg Hourly Earnings, Factory Orders