Article Highlights

  • Swiss foreign currency reserves: CHF 587.6B vs CHF 575.8B previous
  • Euro Zone retail PMI: 47.9 vs. 49.2 previous
  • U.S. NFP report and Canada’s jobs report coming up
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All was calm in the forex front, as traders hunkered down for the upcoming NFP report. Most currency pairs were milling about in tight ranges, but pound and Loonie pairs were on a roller coaster ride.

Major Events/Reports:

NFP Friday! – Today is another NFP Friday, so volatility was naturally a bit more subdued than normal ahead of the NFP report. Still, there were a few currencies that were slowly but clearly on the move, which I highlighted below.

Oh, if you’re planning to trade the NFP report and you need to get up to speed, then you can read Forex Gump’s Forex Preview for the NFP report. And while you’re at it, you may also want to read his preview for Canada’s jobs report also.

Oil takes a fall– Oil benchmarks were bleeding out during the morning London session, with U.S. crude oil down by 1.40% to $44.35 per barrel and Brent crude oil down by 1.47% to $44.52 per barrel by the end of the session. The slide in oil prices was apparently due to profit-taking, according to market analysts.

Skittish risk sentiment – There was a noticeable lack of risk-taking during the morning London session, with the pan-European FTSEurofirst 300 down by 0.88% to 1,295.37, the Euro Stoxx 50 down by 0.86% to 2,906.50, and the DAX down by 0.79% to 9,774.50 near the end of the session.

U.S. equity futures were also losing out, with the S&P 500 futures down by 0.24% to 2,039.00 and the Nasdaq futures down by 0.26% to 4,289.12 during the morning London session while the safe-haven gold was up by 0.77% to $1,282.15 per troy ounce.

Most market analysts attributed the risk-off sentiment to jitters ahead of the NFP report, although they also noted that energy companies were leading the way down, so the slide in oil prices during the session was likely weighing down on risk sentiment as well.

Major Currency Movers:

CAD – The Loonie was broadly strong during the first half of the morning London session despite the slide in oil prices and the general risk aversion. However, the Loonie made a U-turn halfway through the session and began weakening across the board.

USD/CAD was down by 18 pips (-0.15%) to 1.2871 with 1.2835 as session low, EUR/CAD was down by 6 pips (-0.05%) to 1.4706 with 1.4663 as session low, NZD/CAD was down by 5 pips (-0.06%) to 0.8806 with 0.8781 as session low

GBP – The pound’s price action was pretty similar to that of the Loonie’s in that pound pairs climbed higher across the board during the first half of the session before crashing back down again during the later half.

GBP/USD was up by 4 pips (+0.03%) to 1.4482 with 1.4522 as session high, GBP/JPY was down by 5 pips (-0.03%) to 154.86 with 155.27 as session high, GBP/AUD was down by 11 pips (-0.06%) to 1.9647 with 1.9709 as session high

Watch Out For:

  • 12:30 pm GMT: U.S. non-farm payrolls (200K expected, 215K previous)
  • 12:30 pm GMT: U.S. jobless rate: (expected to tick lower to 4.9% from 5.0%)
  • 12:30 pm GMT: U.S. average hourly earnings (0.3% expected, same as previous)
  • 12:30 pm GMT: Canada’s jobless rate (expected to tick higher to 7.2% from. 7.1%)
  • 12:30 pm GMT: Canada’s net employment change: (2.0K expected, 40.6K previous)
  • 2:00 pm GMT: Ivey Canadian PMI (52.3 expected, 50.1 previous)
  • 3:00 pm GMT: BOC Deputy Governor Lawrence Schembri will share his thoughts in a panel discussion
  • 7:00 pm GMT: U.S. consumer credit ($16.0B expected, $17.2B previous)

See also:

Asian Session Forex Recap

U.S. Session Forex Recap

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