Feb 5th 2016: Dollar Steady Ahead of NFP

• After a second day of pressure, the US dollar is at least stable this morning as we head towards today’s Non-Farm Payrolls report. Yesterday brought worse than expected unemployment claims and factory orders.

• The euro has been particularly strong by contrast, not from any specific positive news, but more from the absence of anything significantly negative.

• The pound has had a poor time of it however, after a negative prognosis from the Bank of England yesterday and shift in voting patterns to unanimously back holding interest rates at current levels.

• Commodity currencies are on the back foot with oil dipping lower.

• Meanwhile, the USD/JPY has stabilised after four days of heavy selling.

Coming up today: 

• We start with German factory orders at 07.00.
• The day is really all about US Non Farm Payrolls at 13.30 with a gain of +189k expected. Unemployment claims and average earnings are released at the same time. The equivalent Canadian figures are released at the same time.

Trade Idea: 

• After a huge drop in the USD/JPY this week, we could at least see some stabilisation today with the release of Non Farm Payrolls.

• A good way to play this could be a HIGHER trade predicting that the USD/JPY will close above 117.50 in 7 days time for a potential return of 138%.

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