NFP vs Euro debt. which one is going to take charge on the markets today.

It’s a new week and a lot of news came out on Friday. US NFP was the big boy of data that came out on Friday. Unfortunately it came out disappointing at 39K vs 150k consensus.  On the other hand the ISM came out better at 55.0 vs 54.8 consensus.

USD selling was high on Friday after the data, and increased after Bernanke stated that UST purchases beyond the $600bn currently marked for Q2 would not be ruled out.

We saw the Euro take out stops on the top clearing 1.3300 all the way to 1.3415. But sovereign bond spreads are tightening sharply and ECB is to release the value of ECB’s bond purchases today.

Aussie followed in-tail on the risk sentiment above 0.99.

No important data coming out today, so keep a watch on sentiment play.  Will the poor NFP data push markets even higher today or will the Euro debt issues come to the fore front again for another bear move.