Headlines:
- Welcome to jobs day in the US
- USD/JPY bulls locked and loaded above 140.00
- Pipeline operator data suggests Nord Stream flows to be back on Saturday as planned
- Eurozone July PPI +4.0% vs +3.7% m/m expected
- Germany July trade balance €5.4 billion vs €4.8 billion expected
Markets:
- EUR leads, JPY lags on the day
- European equities higher; S&P 500 futures flat
- US 10-year yields flat at 3.263%
- Gold up 0.6% to $1,706.13
- WTI crude up 2.2% to $88.52
- Bitcoin up 0.3% to $20,141
Markets are rather tepid as we count down to the US non-farm payrolls later in the day. That will set the tone before the long weekend, as we get another key data point before the FOMC meeting this month.
The dollar is softer though with EUR/USD climbing back up to parity, up 0.6% on the day. There are large option expiries to be mindful about so be wary of that before they roll off later in the day.
GBP/USD is also up slightly by 0.2% to 1.1570 but remains under threat for a break towards the March 2020 lows. Meanwhile, USD/JPY is staying perky above 140.00 as buyers are locked and loaded for the next upside leg - contingent on what the US jobs report has to offer later today.
Equities are lacking direction but European indices are higher in playing catch up to the late comeback by Wall Street yesterday.
It's all about the NFP now as we look towards the closing stages of the week.