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Sterling was still reeling from the post-Carney commentary when the New York session kicked off. The Kiwi also found itself behind its peers as dollar domination came back in play.

  • U.S. Challenger job cuts down 4.2% y/y in July from previous 19.6% gain
  • U.S. initial jobless claims ticked up from 217K to 218K vs. 220K forecast
  • U.S. factory orders up 0.7% as expected in June
  • Australia AIG services index slumped from 63.0 to 53.6

Major Events/Reports:

Pre-NFP positioning?

It’s almost NFP Friday, ladies and gents! Dollar bulls seem excited to see an upbeat jobs figure, especially since a handful of leading indicators suggest so. If you’re trading this release, make sure you check out Forex Gump’s NFP trading guide!

The latest batch of medium-tier jobs-related figures also came in positive, with Challenger, Gray & Christmas reporting a 4.5% year-over-year decline in layoffs for July. On a monthly basis, this translates to a 27.1% drop in downsizing plans, marking its lowest level of job cuts for the year.

Meanwhile, the initial jobless claims figure ticked slightly higher from 217K to 218K in the latest reporting week, still lower than the estimated rise to 220K.

Stocks mixed, bonds up

Wall Street had one of its better days thanks to impressive Apple earnings that buoyed the company’s cap to $1 trillion, making it the first U.S. company to hit that milestone.

  • Dow 30 index is down 7.66 points to 25,326.16 (-0.03%)
  • S&P 500 index is up 13.86 points to 2,827.22 (+0.49%)
  • Nasdaq is up 95.40 points to 7,802.69 (+1.24%)

U.S. bond yields also found themselves in positive territory, likely supported by Fed tightening hopes and upbeat NFP expectations.

  • U.S. 2-year yield is up to 2.674% (+0.32%)
  • U.S. 10-year yield is up to 2.992% (+0.18%)
  • U.S. 30-year yield is up to 3.122% (+0.10%)

Major Market Mover(s):

USD

Traders seem to have high hopes for the NFP release this Friday as dollar bulls are positioning for strong results. Higher U.S. bond yields and a positive showing in the stock market also lifted the currency.

USD/JPY pulled up to 111.73 from 111.31, EUR/USD is down from 1.1625 to 1.1583, GBP/USD carried on with its drop to a low of 1.3015, USD/CHF rallied to .9958, and AUD/USD fell from a high of .7381 to .7359.

NZD

The Kiwi found itself at the bottom of the forex pile as it proved no match to U.S. dollar strength.

NZD/USD tumbled from a high of .6784 to a low of .6733, NZD/CHF broke below the .6750 support and found itself at .6703, EUR/NZD popped up to 1.7205, and AUD/NZD is up to 1.0929.

JPY

The yen returned a few of its gains from the earlier session, possibly on profit-taking or caving in to dollar domination.

EUR/JPY held tight to the 129.50 area, AUD/JPY bounced off the 82.00 mark to a high of 82.84, CAD/JPY pulled up to a high of 85.91, and CHF/JPY climbed from 111.94 to a high of 112.29.

Watch Out For:

  • 1:30 am GMT: Australian retail sales m/m (0.3% expected, 0.4% previous)