Asian equities were mixed, no inspiration there. USD has consolidated all week basically…from a positioning perspective, this may now open up further space for a fresh leg up.
AUD popped on the jobs data, which was surprizingly strong. There have been changes in the statistical methods used to derive the data recently, so it’s tough to take the number (58.6K vs 15K expected) at face value. However, it remains true that the Aussie labour market is stabilizing.
Looking ahead: today’s focus will be on regional EU inflation figures, followed by EU industrial production. Beyond data, ECB President Draghi will speak at the quarterly hearing before the European Parliament’s Economic and Monetary Affairs Committee this morning at 9.30 CET and will be closely watched for further guidance on monetary policy moves. During the US session, initial jobless claims are expected to print lower (270k vs 276 prior). A handful of Fedspeak is also on tap: Yellen (14.30 GMT) will be the highlight, giving welcoming remarks at a conference on monetary policy; Bullard (14.15 GMT) speaks on Monetary Policy in Washington; Fed’s Lacker (14.45 GMT) participates in Monetary Policy Panel; Evans (15.15) speaks on Economy and Policy in Chicago; Dudley (17.15) speaks on Economy and Policy in New York; Fischer (23.00 GMT) speaks on Financial Stability and Monetary Policy.
I think it pays to watch the strongest USD candidates today:
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