FX Volatility Consolidates Ahead of U.S. Non-Farm Payrolls
05.06.2009 (11:51)
Consolidation
was the theme of the Asian session as the market awaits the results of
the U.S. non-farm payroll data later Friday. AUD, NZD and EUR all held
a better bid tone, partly on the back of JPY cross demand but the
currencies were unable to carve out new ground, and remained under
highs seen Thursday. USD/JPY was bid on the same cross demand, with
hybrid bond desks behind the bid in JPY crosses tied to trades based on
yield differentials. GBP/USD, while finding support ahead of 1.6100,
was offered on the back of the upheaval in the government and ongoing
speculation that PM Brown will resign. EUR/USD traded a range of 1.4165
to 1.4215 from the Tokyo open while USD/JPY traded a range of 96.57 to
96.90. Whispers of a better-than-expected non-farm payroll result of
-475K, which had emerged in the futures market in late NY, kept U.S.
Treasury yields underpinned, with a slight rise over Asian trading.
Asian stock markets were mixed on the day with traders cautious ahead
of the U.S. jobs data.
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