Intraday Market Thoughts

Currencies Little Changed Ahead Of NFP

by Patrik Urban
Oct 5, 2012 12:48

No change from the BOJ; IMF lowers growth outlook; German factory orders fell. Market awaits labor market data from the US and Canada. Latest Premium Insights for Thursday night are out. See link below.

Currencies are trading within narrow ranges ahead of the NPF. European equities are gaining about 1%.

The BOJ unanimously left the overnight call rate between 0 and 0.1% and kept the asset buying program unchanged at JPY 80 trln. JPY rose on the news sending USDJPY to 78.27 but the pair retraced a part of the loss and trades around 78.45.

Reuters quotes EU senior official who said that the EU summit on 10/18-19 will not take any decisions on Greece as the work on reforms and macroeconomic situation will not be ready. Another official said that Spanish request for a bailout is not imminent. EURUSD is trading just a few points above the 1.30 handle.

In other news, the IMF lowered global forecast to 3.3% from previous 3.4% for 2012 and for 2013 to 3.6% from initial estimates of 3.6% and German factory orders fell 1.3% m/m which translates to a deepening decline to -4.8% from -4.6% on annual basis.

The US session will bring the much anticipated NFP report that is expected to rise by 114K after previous 96K while the unemployment rate is seen ticking higher to 8.2% after a solid decline to 8.1% seen in August.

Canadian data will include employment change that is anticipated to rise only 11.7K after rising 34.3K in August and the unemployment rate is expected to remain steady at 7.3%.

Latest Premium Insights for Thursday night include EURUSD, cable, EURJPY, gold, silver and oil. Direct access is found here: Nonsubscribers can join here:


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