 Dollar tumbles sharply in early as poor non-farm payroll report affirms the case for Fed rate cut this year. The headline number of 75k is a big miss. Equally importantly, weaker than expected wage growth argues that inflation pressure could remain subdued ahead. The question now is on whether there will be substantial improvement in trade tensions ahead. As Dallas Fed Kaplan put, things could be turned around in a matter of weeks. Though, at least, there is little chance for a deal between US and China in the near term. Hope is more on whether Mexico could avert the tariffs due Monday. Technically, the biggest mover is found in USD/CAD, which plummets on strong Canadian job data. Current development firstly confirms completion of rise from February's low of 1.3068. More importantly, there is sign of reversing the medium term trend from 2017 low of 1.2061 too. EUR/USD also breaks through yesterday's high of 1.1309. Rebound from 1.1107 is now expected to extend towards 1.1448 key resistance Though, for now, Dollar is held above this week's low again Swiss, Yen and Aussie. We'd see if there is breakout before weekly close. In other markets, DOW futures is still trading up 0.1% at the time of writing. But 10-year yield extends recent decline to as low as 2.059. In Europe, currently, FTSE is up 0.57%. DAX is up 0.37%. CAC is up 1.17%. German 10-year yield is down -0.016 at -0.252, extending the run for record lows. Earlier in Asia, Nikkei rose 0.53%. Hong Kong and China were on holiday. Singapore Strait Times rose 0.64%. Japan 10-year JGB yield rose 0.0048 to -0.116. |
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