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6 Feb 2015
Bunds outperform, USD mixed ahead of US NFP – TDS
FXStreet (Barcelona) - Tim Davis, Vice President, Rates and FX Research at TD Securities, shares the performance of FX and bond markets in the European morning session.
Key Quotes
“The European morning session has been rather quiet as we await the dual employment reports from North America.”
“Bunds have outperformed gilts and Treasuries on the back of a disappointing German IP print while European peripheral spreads have widened slightly and the DAX has underperformed on the European equity side with most other European bourses marginally lower.”
“The USD is mixed on the day, with EURUSD 0.3% lower but USDJPY down 0.2% since the North American close while AUD and NOK are both performing well with commodities up on the day and with the market reducing expectations of another RBA cut following the SoMP overnight. We continue to look for another 25bp cut in May.”
“Looking ahead, we are marginally above consensus for US nonfarm payrolls looking for a 245k print (consensus: 230k, prior: 252k) while in Canada we look for a 5k fall in employment against consensus expectations of a 5k rise.”
Key Quotes
“The European morning session has been rather quiet as we await the dual employment reports from North America.”
“Bunds have outperformed gilts and Treasuries on the back of a disappointing German IP print while European peripheral spreads have widened slightly and the DAX has underperformed on the European equity side with most other European bourses marginally lower.”
“The USD is mixed on the day, with EURUSD 0.3% lower but USDJPY down 0.2% since the North American close while AUD and NOK are both performing well with commodities up on the day and with the market reducing expectations of another RBA cut following the SoMP overnight. We continue to look for another 25bp cut in May.”
“Looking ahead, we are marginally above consensus for US nonfarm payrolls looking for a 245k print (consensus: 230k, prior: 252k) while in Canada we look for a 5k fall in employment against consensus expectations of a 5k rise.”