Markets were unusually choppy overnight, with the U.S. dollar initially falling against European currencies before recovering heading into the U.S. lunch session…and following the exact opposite path against the commodity dollars.
While this week’s U.S. data doesn’t have a massive direct influence on GBP/JPY, the pair is still a good barometer of risk sentiment in the market and should react to changes in traders’ risk appetite. GBP/JPY has clearly taken a turn for the worse over the last few weeks.
U.S. stock futures pared some gains on Wednesday, but kept Wall Street on track to open higher, after weaker-than-expected private U.S. jobs data, raising the odds that the Federal Reserve would not raise interest rates this month.
Eurodollar and Treasury futures are slightly higher in early trade on Thursday, August 6 with the Eurodollar futures yield curve basically shifted 1-2 bp lower and the Treasury curve too with movement of a similar magnitude.