It's Non-farm payroll time!

Whoa! Did you take a look at the Euro last night! ECB president Trichet fired up the Euro with his hawkish comments last night. Euro took out barriers last night at 1.3950 to a high of 1.3976. Trichet’s use of “strong vigilance could mean a rate hike next month” sparked the rise on the Euro. Economists are now looking for a 25bps hike at the meeting next month!!

The dollar managed to put in a mixed session on the back of its stronger jobless claims data. US nonmanufacturing ISM index rose up to 59.7 as well and we saw the dollar strengthen against the yen.

The USDJPY moved higher on the back of stronger US jobs data and we also saw the EURJPY run up by almost 2 big figures!

Our dear cable got crushed a little thanks to Euro, as a weaker than expected UK services survey and Trichet’s comments propelled the EURGBP higher by more than 100 pips! This also caused the GBPUSD to stay under pressure.

The Aussie too failed to club higher and struggled against the resistance level of 1.0200.

We have non-farm payroll tonight which could bring in some surprises. I’m going to keep it low until then.

Data Today

UK House Prices – 8am GMT

US unemployment rate – 1.30pm GMT

US Non-Farm payrolls – 1.30pm GMT

US factory orders - 3pm GMT

Happy Trading!

FxTaurian