Day: The daily chart shows the EUR/GBP going up against a declining trendline.

The market is reacting by pausing the rally at 50% retracement, 0.8350 level.

AUDUSD: The pair remains biased to the upside having held firmly above the 0.9078 level. This has created scope for more upside towards the 0.9219 level.

Currency markets are relatively quiet as traders are on the sidelines ahead of the key US employment report. The usual safe havens, the Swiss franc, Japanese yen and US dollar softened slightly as the rally in risk continued overnight.

The euro is pushing its luck with the dollar even ahead of the critical employment report due out later this morning. Having touched $1.2854 already this morning, the euro is teetering on a surge to perhaps $1.2925 if today's jobs report softens the perceived need to hold dollars on safety grounds. That aside, the euro seems to have several other tailwinds boosting its appeal at the moment.

Economic Data

(IN) India August Markit Services PMI: 59.3 v 61.7 prior

(ID) Indonesia Central Bank raised the Primary Reserve Requirement to 8.0% from 5.0% prior (Not Expected); Maintained the Reference Rate at 6.50% level (As Expected)

Europe ends this week with services sector's performance, where the sector witnessed improving conditions across the continent, except for Germany's that dropped beyond expectations but remained well above 50.0.

Paid Signals for afternoon today

GBP/USD
Trend: Downward
Sell@ 1.5414 Target 1.5384 Stop 1.5444
Supports: 1.5365 - 1.5317
Resistances: 1.5402 - 1.5450

The downtrend on the USD/CHF continues. Downtrends present three possible entry opportunities: continuation, correction, or reversal. Due to the downtrend's strength it's very likely that a continuation and/or a correction (also known as a Retracement) will occur.

EUR/GBP

Current level - 0.8312

Longer term bias switched to bearish now that the cross has breached key support in 0.8400 area.

It's that magical time again, the first Friday of the month, which we all know brings the euphoria that is NFP! Couple this with the fact that Monday is a US holiday (Labor day) and you might get an understanding of how this afternoon is going to play out.

Sunrise Market Commentary

• Global bonds continue to correct ahead of the payrolls
  The payrolls today will be key for the near-term fate of global bonds. While there might be risks on the downside of ex-pectations, markets may look at the report through rose-coloured glasses. This means that if the report is not too bad, equities could move higher as can bond yields.
  Read more

  Add comment (0)

  Hits: 24

Previous session overview

The dollar rose slightly against the yen in Asia Friday as stable Japanese share prices prompted hedge funds to try to trigger automated stop-loss buying orders.

What's going on?

Nonfarm payrolls and the unemployment rate are reported today and we expect a mostly unimpressive report with payrolls falling to 125,000 and the unemployment rate rising to 9.6%. The positive is our expectation for a positive print for the vital private sector of 5,000.

MAJOR HEADLINES - PREVIOUS SESSION

• US Q2 Final Non-farm Productivity out at -1.8% vs. -1.9% expected and -0.9% prior
• US Initial Jobless Claims out at 472k vs. 475k expected and revised 478k prior
  Read more

  Add comment (0)

  Hits: 21