Counting down to the US non-farm payrolls
The dollar gained strongly yesterday on the back of stronger US data as the market looks to be building high expectations ahead of the non-farm payrolls report later.
There are good arguments for both sides of the coin but I’ll dive more into that later in the day. For now, the dollar sits in a pretty decent spot but is it setting itself up for disappointment when this is all said and done? Only time will tell.
Treasury yields also nudged a little higher yesterday but are keeping flatter today with US futures looking more tepid on the day as well.
It is all about the countdown to the US jobs report later so don’t expect much fireworks in Europe, though we could see some positioning plays creep in.
0730 GMT – Germany May construction PMI
0830 GMT – UK May construction PMI
0900 GMT – Eurozone April retail sales data
Euro area retail sales is expected to slump a little in April after the Easter sales bumped things up in March. The outlook should improve towards the latter stages of Q2 as the virus situation is getting better across the region though.
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.