From Marc Chandler at Bannockburn Global Forex:
After recovering in the North American afternoon for the second consecutive session yesterday, the dollar has been sold again in Asia and Europe today. The market has mostly shrugged off news of new hostilities in the Middle East. As is often the case, the ceasefire has been frayed but appears to remain intact. Ostensibly, it runs until May 17. Late yesterday, a federal trade court issued a narrow ruling on 2-1 vote to grant a request by a group of small businesses and Washington state to stop the US from collecting the Section 122 tariffs.
The focus shifts to the US jobs report. Ahead of the report, the Fed funds futures have about two basis points of tightening discounted for this year, down from nearly eight at the beginning of the week. Given the uncertainties surrounding the Middle East, the market may pare risk exposure before the weekend. The dollar is mostly softer and the drubbing of the UK’s Labour Party and the surprising drop in in German industrial output failed to have much market impact....
....MUCH MORE
