Global Markets:
- Asian stock markets: Nikkei and ASX both down 0.30 %, Hang Seng lost 0.35 %, Shanghai Composite closed
- Commodities: Gold at $1255 (+0.20 %), Silver at $17.32 (-0.15 %), WTI Oil at $50.40 (-0.10 %), Brent Oil at $52.45 (-0.15 %)
- Rates: US 10 year yield at 1.73, UK 10 year yield at 0.87, German 10 year yield at -0.02
News & Data:
- Australia AIG Perf of Construction Index Sep: 51.4 (prev. 46.6)
- Japan Labour Cash Earnings (YoY) Aug: -0.1% (est. 0.40%, prev. 1.20%)
- Sterling recoups some losses after near 10 percent plunge; stocks slip – RTRS
- Wall Street ends flat with eyes on payrolls – RTRS
- Treasuries Extend Selloff as Fed Bets Boost Dollar; Gold Slumps – RTRS
- Goldman Sees ‘Buying Opportunity’ If Gold’s Plunge Gets Worse – RTRS
- September Payrolls Have Been a Disappointment Since 2009 – RTRS
Markets Update:
All eyes were on the GBP overnight. At approximately 2305 GMT, GBP/USD had a flash crash that send the pair 800 pips lower, from 1.2610 to a low of almost 1.18. While some see the comments made from French PM Hollande as the trigger, this was clearly not a normal reaction and liquidity in the interbank market was bad, given it happened at a time where US traders have already left their desks and Asian traders just joined.
GBP/USD has recovered most of its losses during the Asian session and rose to 1.2480, but is likely to remain under pressure in the near-term, especially if today's US employment data beat expectations.
Price action in the other major pairs was quiet compared to the Pound. EUR/USD traded within a 1.1110-50 range, while USD/JPY fell from 104.00 to a low of 103.55. The Australian Dollar continues to consolidate and traded 0.7660-90 overnight. The New Zealand Dollar saw a larger decline today, as it fell from 0.7170 to a low of 0.7125.
There will be plenty of data releases today, but the focus will be on US employment data, with NFP expected to come in at 175k.
Upcoming Events:
- 07:00 BST – German Industrial Production
- 07:45 BST – French Current Account
- 07:45 BST – French Trade Balance
- 08:30 BST – UK Halifax House Price Index
- 09:30 BST – UK Manufacturing Production
- 09:30 BST – UK Industrial Production
- 13:30 BST – US NFP
- 13:30 BST – US Unemployment Rate
- 13:30 BST – US Average Hourly Earnings
- 13:30 BST – Canadian Employment Change
- 13:30 BST – Canadian Unemployment Rate
- 15:00 BST – Canadian Ivey PMI
- 15:30 BST – FOMC Member Fischer speaks
- 17:45 BST – FOMC Member Mester speaks
- 20:00 BST – FOMC Member George speaks
- 20:30 BST – CFTC Positioning Data
