In summary, Friday’s US jobs report was pretty much in line with expectations, although the slightly better data on earnings gave some support to the dollar into the end of the week. As a result, the US currency was little changed from Tuesday’s opening levels. This was at least true against the single currency and yen, less so against sterling which stands more than 1% weaker over the period, together with most of the commodity based currencies, the Aussie, Canadian and Brazilian real all firmer against the dollar. Still, there are signs that the going is getting tougher for the dollar; selling into strength was a feature of last week and the events in China showed that there were still vulnerabilities on the other side of the equation.
For this week, the same dynamic could well be in evidence again, but perhaps a little weaker given Friday’s earnings data. We have a spattering of central bank speaker through the week. Fed’s Lockhart speaks this evening, with Carney speaking Wednesday and the ECB publishing minutes to its last meeting on Thursday. In equities, the obsession with Down 20k continues, with that having failed to be met Friday. The UK continues to push new highs on a near daily basis, whilst the correction in gold prices has stalled slightly, but this after a near 2 week run higher.