Headlines:
What is the distribution of forecasts for the US NFP?The US jobs report will be the main event to end the weekUS futures keep more pensive awaiting jobs dataJapanese yen sharply higher on suspected intervention, speculators running for the exit?Quick fall in USD/JPY as we get to the handover from Asia to EuropeJapan ministry of finance declines to comment on sudden yen spikeJapan shifts to ambush tactics against yen speculators, sources tell ReutersSwiss inflation picture holds pretty much unchanged in June
Market update:
JPY leads, USD lags on the dayEuropean stocks sit higher, DAX up 1% and CAC 40 up 0.8%S&P 500 futures flat, Nasdaq futures down 0.2%WTI crude down 1.4% to $67.60US 10-year yields up 1.8 bps to 4.49%Gold up 0.9% to $4,064
It was a more pensive session as broader markets are waiting on the US jobs report in wrapping up this holiday-shortened week.
As a reminder, the US bond market will close early today with both that and the stock market being closed tomorrow in the run up to Independence Day.
Still, we had some notable market moves with USD/JPY being in focus after a quick and sudden spike in the yen currency. The pair fell by around 100 pips from 162.20 to 161.13 in a jiffy before rebounding back to 161.90 shortly after. But since then, it’s been a slow dribble back towards 161.10-30 levels afterwards.
A minor intervention? A rate check? “Ambush tactics”? Or perhaps just traders feeling the nerves amid heightened intervention risks? I’m leaning towards the final point considering the liquidity concerns that may crop up tomorrow after the jobs data today.
Besides that, there was more of a mixed market mood in general. Oil prices continue to drop lower with WTI crude down 1.4% to $67.60. Meanwhile, European indices are sitting higher while US futures are more pensive on the session. S&P 500 futures are flat while Nasdaq futures are down 0.2%, with tech shares being in focus once again.
In other markets, the dollar itself in generally softer against the rest of the major currencies bloc. Then, we have 10-year Treasury yields sitting up by 1.8 bps to 4.49% and precious metals also climbing so far on the day. Gold is up 0.9% to $4,064 with silver up 1.3% to $59.90 currently.
It’s all on the non-farm payrolls to set the tone in ending the week now.
This article was written by Justin Low at investinglive.com.