Forex today witnessed a quite affair on the final trading day of this week, as a sense of caution prevailed ahead of the highly influential US labour market report. Most majors hovered in tight trading ranges, having ignored upbeat macro news and some buying interest seen around the US dollar.
USD/JPY remains flat-lined around 107.85, as the Yen failed to benefit from a jump in the Japanese household spending. Among the European currencies, both the Euro and the Pound clung to its recent trading ranges.
The UK lacks first-tier macro news and hence, the GBP traders will take cues from the Halifax House Prices data slated for release at 07:30 GMT. At 08:00 GMT, the speech by the ECB Vice President De Guindos will offer further trading impetus to the shared currency.
Markets gear up for the highly-anticipated US June Non-Farm Payrolls data due to be released later today at 12:30 GMT alongside the US hourly wages and the jobless rate. The US jobs data is crucial to the markets as it is seen as the main determinant for a July Fed rate cut. A disappointing figure would bolster the dovish Fed expectations, as it would suggest that the US labour market is losing steam.
Apart from the macro events, the developments surrounding the US-China trade talks, Iranian geopolitical tensions and UK political scenario will be watched for any impact on the broader market sentiment.
Oil prices fell on Friday in despite heightened tensions in the Middle East due to the seizure of an Iranian oil tanker by British Royal Marines. Despite the news, oil prices were down today due to concerns on economic growth and weakening demand, according to analysts.
Gold prices are tracking Us yields, as focus turns to Nonfarm Payrolls. Markets are quiet following the 4th July holidays in the U.S. but the price from here will depend on the Nonfarm Payrolls report today and any major swings one way or the other, including in any revisions that will likely sway the Federal Reserve will either hold, cut by 25bp, as the markets have priced, or be forced to cut by 50bps if the data is significantly bad.