It was the first time in 15 non-farm payrolls reports that the headline figure missed on estimates and that was enough to sink the dollar, despite Treasury yields moving higher. Equities were hopeful in the aftermath but ended the day at the lows with major indices in the US closing marginally lower.
In FX, that continues to signal a breakdown between USD/JPY and Treasury yields price action but we are seeing that correct a little today. The pair is up 0.6% to 142.85 currently after Friday's sharp drop, which saw the pair retrace back near the 142.00 mark.
The dollar is sitting slightly higher today as it finds its footing again, with the risk mood still leaning towards the side of caution.
Looking ahead to Europe, there won't be much data to shake things up. I would expect markets to keep more tepid and vigilant, especially since we have the US CPI data coming up on Wednesday this week. That is the biggest of data points that we should get before the Fed meeting later this month.
0800 GMT - SNB total sight deposits w.e. 7 July
0830 GMT - Eurozone July Sentix investor confidence
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
