6 May 2015
USD slips ahead of Jobs report – TDS
FXStreet (Barcelona) - With USD trading soft ahead of the jobs report on Friday, FX Strategists at TD Securities view that a decent print from the ADP employment data today should broadly support the dollar.
Key Quotes
“The USD is generally softer so far today, with even the GBP gaining marginally as the UK prepares for a knife-edge election, but we contend that weakness is temporary and liable to reverse, sooner rather than later.”
“Pressure on fixed income has been reflected in Eurozone debt, squeezing long-term yield differentials here in the EUR’s favour—through we note that US-Japan 10Y differentials are pushing back towards recent peaks in more obviously USD-supportive fashion.”
“We do not think higher long-term rates in Europe are sustainable—even considering the better growth signals (today’s PMI data); the ECB will continue with full implementation of its asset purchase programme.”
“On the other hand, decent jobs data from the US in the next few days (ADP today) should be broadly USD-supportive and go some way to reassuring markets that the US economy remains (more or less on track).”
“We still rather think EURUSD reached an important (short-term, at the very least) peak last week around 1.13 and rather look for opportunities to get long USDs again after the April weakness.”
Key Quotes
“The USD is generally softer so far today, with even the GBP gaining marginally as the UK prepares for a knife-edge election, but we contend that weakness is temporary and liable to reverse, sooner rather than later.”
“Pressure on fixed income has been reflected in Eurozone debt, squeezing long-term yield differentials here in the EUR’s favour—through we note that US-Japan 10Y differentials are pushing back towards recent peaks in more obviously USD-supportive fashion.”
“We do not think higher long-term rates in Europe are sustainable—even considering the better growth signals (today’s PMI data); the ECB will continue with full implementation of its asset purchase programme.”
“On the other hand, decent jobs data from the US in the next few days (ADP today) should be broadly USD-supportive and go some way to reassuring markets that the US economy remains (more or less on track).”
“We still rather think EURUSD reached an important (short-term, at the very least) peak last week around 1.13 and rather look for opportunities to get long USDs again after the April weakness.”