Narrow trading is the prevailing narrative in markets so far
It's NFP Friday and market participants are keeping an eye on the payrolls data to come surely. That leaves for a bit of a lull in the build up to the release and the narrow trading ranges on the day pretty much reflects that sentiment.
The greenback is holding steady on the day despite odds of a Fed rate hike later this month being scaled back overnight. The aussie and yen are the mild laggards, but nothing too substantial.
The former is slightly offered following some poor data earlier in the day, though it's not really something that will weigh on the aussie too much. Talks of the RBA possibly pausing rate hikes altogether next year and maybe erring towards rate cuts are what is weighing more on the currency in my view.
Meanwhile, the yen is slightly weaker as risk sentiment recovers slightly following the rebound in US equities overnight. The Nikkei gained on the back of that but Chinese equities are looking rather flat in thin trading today.
Looking ahead, I would expect quiet tones to prevail with markets focused on the payrolls data to come. European equities should see a strong bounce in trading today as they seek to play catch up to the recovery in Wall St. They closed yesterday well in the red before the rebound in US equities came about.
Also, keep an eye out on the pound. There's talks that Theresa May could be looking into delaying the meaningful vote next Tuesday in order to avoid an imminent defeat if things proceed in the current manner.