The currency markets settled down overnight, consolidating Thursday’s post ECB and G20 rush with only USD/JPY breaking rank posting a fresh 5 month high, albeit briefly, of 100.18. The DJIA managed a 2.8% gain but the proximity of an expected horrible U.S. payrolls number weighed on the Nikkei which closed just 0.3% higher. Europe is likely to keep the major spots in tight ranges ahead of payrolls, UniCredit says EUR/USD needs a proper break above 1.35 to reopen the post Fed highs of 1.3750, but a dreadful jobs report could drag it lower again.
Alan