With Euro rate verdicts out of the way, attention shifts to US payrolls
May 5th - With little direction forthcoming for currency markets through the Asian session, the dollar is continuing to sit not too far from recent lows against most of the majors as traders await non-farm payroll data in a few hours time. There’s very little else of note on the economic calendar today so essentially this stands to determine the mood of currencies as we get to the weekend break and it’s really going to take either a solid jump in employment stats or consensus that the dollar sell-off over the last three weeks has been somewhat overdone if the greenback is to find any significant support now. The figure to look out for seems to be 200,000 and anything notably above this may encourage some to book profits by closing out short dollar positions before the close. However, downside pressures are set to remain given the overriding hawkish tone at yesterday’s ECB meeting and press conference, with a 25 basis point hike at the June meeting now looking pretty much certain. Next week’s FOMC is also worthy of note, but with US rate hikes seen as coming to a close soon, even confirmation that another quarter point will be added here is unlikely to be of that much assistance…
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