From Marc Chandler at Bannockburn Global Forex:
The low-intensity war in the Middle East continues. Crude oil looks set to close the week higher for the first time in three weeks. Meanwhile, some poor earnings have hit the tech sector this week and it is evident in both Asia and the US. A dramatic revision to Ireland’s Q1 growth spurred a downward revision in Q1 eurozone growth to show a 0.2% contraction rather than a 0.1% expansion. Nevertheless, the market remains confident that the ECB will hike rates next week.
The immediate attention turns to the US May employment report. It often elicits a dramatic reaction in the foreign exchange market. The median forecast in Bloomberg’s survey is for an 88k increase. The 150k average in March and April are subject to revisions. Still, given the new Fed chair, the impact on expectations for the June 16-17 FOMC will likely be minimal and this may dampen the reaction today’s report. That said, the intraday momentum indicators appear to favor a dollar recovery ahead of the weekend....
....MUCH MORE
