European Open: Friday Reversal?

After a dismal week, will we see a typical Friday reversal? So far it looks quite possible, given that we also have NFP to create some volatility. The only currency pair I’m looking to remain short on is GbpUsd so long as we remain below the Asian High and push through the Asian low. I’d expect 4550/60 to be a logical intraday target if that happens.
Small rant on all this CNY fixing: recall that the IMF decided to include the Yuan in its SDR basket.  It appears that the Chinese policy makers “behaved” until that hurdle was cleared. We are now seeing a reversion to old habits: keeping the Yuan weak to bolster the economy, despite worsening the “Currency Wars” debacle. Other EM nations will be forced to respond with their own actions (EM Strikes Back?) and finally it will lead to more outflows and reduce the necessity of tightening by the Fed.
Today we see the first NFP of 2016. Economic data since the December hike has been mixed,  but the indications are that this will be another solid employment report.Consensus is for a rise of 200k and the stronger ADP this week seems reassuring. Don’t forget average earnings, which has started to drift up in recent months an isexpected to continue it’s ascent.

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