A sense of calm prevailed across the forex space amid a typical pre-NFP caution trading this Friday. The US dollar remained broadly lower, still hit by the FOMC follow-through, despite the bounce in the Treasury yields that dragged Gold lower from weekly tops.
The USD/JPY pair bounced-off lows and recovered to the 108.00 handle, tracking the rise in the Wall Street futures and Treasury yields. Both the European currencies, the EUR/USD and GBP/USD are trading with mild gains. EUR/USD remains capped below 1.1170/75 levels while GBP/USD holds above the 1.2950 barrier ahead of the UK Manufacturing PMI release.
A busy day ahead, in term of the economic calendar, with plenty of key event risks ahead while markets await fresh updates on the US-China trade issue. The EUR calendar is relatively light, with the UK Manufacturing PMI, due at 09:30 GMT will headline.
In the NA session, the focus will be on US Nonfarm Payrolls along with the jobless rate and hourly wage growth data, all to be released at once at 12:30 GMT. Also, the US Manufacturing sector activity reports from both Markit as well as ISM will be eyed around 14:00 GMT. The US economic news will offer fresh hints on whether the Fed will resort to another rate cut in December.
Later in the American mid-morning, we have a slew of US Federal Reserve (Fed) officials scheduled to speak, including Williams, Clarida and Quarles. At 17:00 GMT, oil traders will look forward to the Baker Hughes US Oil Rig Count data.
Oil is changing hands at $54.20 representing little change on the day. Prices hit a low of $53.73 in the overnight trade. The black gold came under pressure on Thursday as official data from China showed factory activity shrank for a sixth straight month in October and growth in the service sector fell to lowest since February 2016.
Gold consolidates previous gains despite USD weakness and risk sentiment remaining sluggish amid US-China trade pessimism.