USD gains ahead of NFP report

USD/JPY and the JPY complex were better bid in Asia after a volatile overnight session. USD/JPY had traded through 120.00 to 120.25 ahead of ECB Pres Draghi’s press conference. A major reversal was seen post-Draghi with his less dovish-than-expected tack disappointing bears and resulting in wholesale EUR short-covering and USD weakness. USD/JPY hit an outlier low of 119.33 before bouncing back. Asia saw USD/JPY initially dip down to 119.71 before grinding slowly higher to 120.10. Japanese exporters were not as active sellers as yesterday. Although more offers are eyed on the 120-handle, size may not be seen till above 120.25. Japanese importers, investors and offshore funds were good buyers again, albeit holding back a bit ahead of tonight’s US non-farm payrolls release. Stops are eyed above 120.25 and below 119.30 and 119.00. So-so large option expiries are eyed at 119.50, 120.00 and 120.50. EUR/JPY was also better bid, up modestly from 148.32 to 148.55 but still well below yesterday’s 148.95 high and 149.12 on November 20. GBP/JPY dipped to 187.26 before bouncing to 187.92. AUD/JPY and NZD/JPY did little, holding between 100.30-57 and 93.09-29, respectively.

EUR/USD and the EUR complex did little in Asia as has been the recent wont and especially so ahead of the key US non-farm payrolls release tonight. EUR/USD traded a tight 1.2373-93 range, consolidating after the short-covering rally last night after ECB Pres Draghi disappointed bears with a less dovish-than-expected tack, perhaps on German opposition. Large nearby option expiries helped pin the market down with E1.428 bln tipped at 1.2350 and E2.307 bln at 1.2400. EUR/GBP consolidated gains seen yesterday, holding bid between 0.7897-0.7919. Bids look are eyed in the 0.7880-90 window. EUR/CHF, one of the few EUR pairs to fall back yesterday, consolidated overnight losses between 1.2023-26.

GBP/USD sagged in Asia, falling back from 1.5681 to 1.5637 on USD/JPY-led USD strength.

USD/CHF traded quietly between 0.9704-18 in Asia.

AUD/USD opened in Asia at 0.8382 and remained mostly between 0.8376-98 ahead of tonight’s all important US non-farm payrolls data. USD/JPY-led USD strength saw AUD/USD down a small leg in the afternoon to 0.8369. Expectations of RBA ease continued to limit moves up in AUD not only against USD but against the field. Both GBP/AUD and EUR/AUD are at trend highs. Some AUD/USD support is eyed at 0.8315 but a break below here and 0.8300 could very well send it down towards 0.8000 especially if US data proves stronger than expected.

The post USD gains ahead of NFP report appeared first on Forex Circles.

Source:: USD gains ahead of NFP report

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