From Marc Chandler at Bannockburn Global Forex:
The US dollar is broadly stronger. Against many G10 pairs, it is at its best level since Tuesday’s midterm elections. Ahead of the US jobs report, the euro and sterling are holding on to small gains for the week. The Antipodean currencies and the Norwegian krona are off 1.5%-2.25% this week.
The sharp equity losses in recent days, reflecting, in part, questions over the AI meme, and the sharp drop in oil prices this week (December WTI is off 12.6%, even after yesterday’s 2.7% recovery and firmer prices today) are important drivers this week. Ten-year yields in the G10 are off 2-14 bp this week, with nearly 14 bp decline in JGBs coming today. The 10-year Gilt yield eased the least—a little more than two basis points. A poor US jobs report can still roil the markets. Ahead of the report, the Fed funds futures are discounting a little less than a 70% chance of a December Fed hike, which is the lower end of where it has been since early September........Data
•The focus is squarely on the US employment report. The median forecast in Bloomberg’s survey is for a 65k increase after 29k in September. The three-month moving average is 51k. The year-over-year pace of hourly earnings may dip...
....MUCH MORE
