Asian equities could trade positive as the USD was weaker, and US stocks clawed back opening losses and finished with firm gains as the US ADP jobs figure missed expectations. The focus shifted to today’s US Nonfarm Payrolls report, although the correlation between the two data points is not always strong.
Liquidity will continue to dry out as Holiday Closures weigh on price action in China, Hong Kong, Taiwan, Thailand & UK. On the US NFP data later in the session, traders might focus on wages to see how employee compensation is faring amid pouring consumer costs. The May jobs data could only have a limited impact on near-term FOMC policy, given that the markets widely priced that the central bank will lift rates by 50bps in June and July. Still, any signs of moderateness in wages may support the view that the Fed could slow the increments of rate rises in September. Is it worth noting that yesterday, Vice-Chair Brainard took a more hawkish view, as she said it is hard to see the case for a pause in rate hikes? She added policy is not on a pre-set course and said if the Committee sees risks to the upside, it will “need to move a little faster”.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.