Headlines:

Markets:

  • GBP leads, CAD lags on the day
  • European equities lower; S&P 500 futures down 0.7%
  • US 10-year yields down 0.4 bps to 3.394%
  • Gold up 0.2% to $1,915.43
  • WTI crude down 0.3% to $75.68
  • Bitcoin up 0.2% to $23,509

It was a choppy session for major currencies as risk stayed on the defensive since Asia trading, following earnings misses for Apple and Alphabet after the Wall Street close yesterday. That was enough to keep US futures lower and that remained throughout with the declines picking up a little in Europe before moderating.

That said, S&P 500 futures are still down 0.7% and Nasdaq futures down 1.3% currently, with European indices also in the red as market players gear towards the US non-farm payrolls data later today.

As for the highlight in European morning trade, I would have to say it was ECB policymakers coming out in force to reaffirm that March will not be their last rate hike. That was enough to see the euro rebound slightly after having seen the dollar hold a steadier footing since yesterday.

EUR/USD moved up from 1.0890 to 1.0930 while GBP/USD also recovered from a low of 1.2285 to 1.2260 currently. However, that still doesn't take away from the loss in the upside momentum from earlier this week for both pairs.

The dollar is trading more mixed as it keeps higher against the commodity currencies, with risk sentiment leaning softer. USD/CAD is up 0.3% to 1.3360 while AUD/USD is down 0.3% to 0.7055 on the day.

All eyes are on the US jobs report coming up next but it may not be the biggest of data points to end the week. Watch out for the US ISM services report as well, which could be an even more vital indicator for markets before the weekend.