7 Sept: Markets on hold ahead of today’s US jobs data. Australian home loans data coming up: FXCharts

A slightly risk averse mood has permeated currency, equity and bond markets on Thursday. The Jpy is firmer at the end of the US session after Japan got dragged into the trade war due to a WSJ column suggesting that Donald Trump intends to turn his focus towards Japan. Elsewhere, the currencies were mostly confined to a tight range ahead of today’s US employment data. The US S&P500 was down 0.4%, with tech stocks again the worst performers. Disappointing US private payrolls data (ADP @ 163K vs expectations of 190K) and potential escalation in the US-China trade war weighed on bond yields, where the US10Y is currently at 2.876%. Gold and Silver are rangebound, while WTI is lower again, down 1.1%.  In the emerging markets it was the turn of the Russian ruble to take the baton, in sinking to a multi-year low

Friday will start with a speech from the RBNZ Governor, Orr, the Australian Home Loans (exp 0.1%mm) and AIG Performance of Construction Index. From Europe we get the German Industrial Production (exp 0.2%mm), Current Account (exp €20 bio) and Trade Balance (exp €20.3 bio), the EU Q2 GDP (exp 0.4%qq, 2.2%yy) but the main focus of the day will be on the US employment report for August (exp 3.9%, +190K, AHE 0.2%mm, 2.8%yy). Have a good weekend