Out of the majors, USD/JPY led the post payrolls charge in the greenback, pushing up through the early 102.00s to tip 102.50, but moves proved cautious in an otherwise quiet session. A strong opening on Wall Street will keep the JPY on the back foot (across the board), and after Friday’s upside surprise, it is hard to see any major pullback in the USD rate developing otherwise.
EUR/USD attempted a return through 1.1100 but failed, and much – if not all – of this was generated by EUR/GBP buying as specs targeted stops through .8500.
The GBP figure level gave way but we saw little momentum through here. Nevertheless, after last week’s aggressive policy action and further readiness to ease from the BoE, there is little respite for GBP, but a short squeeze looks imminent. UK manufacturing and industrial production tomorrow, but this data covers June.
Going against the grain is AUD, which comfortably back through .7600, now targets .7665-75 - the cross rates also bolstering the spot rate. AUD/NZD will remain bid into the RBNZ meeting this week, while AUD/CAD through parity has been largely CAD-led after the exceptionally weak Canadian employment stats which registered a 70k fall in full time jobs.
Oil prices have been offering some relief with WTI back through the mid $42.00s – some attributing this to OPEC comments alluding to concern over the recent drop in prices, but once again, overstretched levels and market dynamics likely behind this. CAD held off Friday’s 1.3200 highs, but these levels remain vulnerable with the domestic stats – building permits also disappointed today – driving trade here at present.