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8 Apr 2013
Forex Flash: Disappoint NFP fail to dent global risk appetite measurably - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the disappointing March US NFP numbers on Friday boosted EUR/USD higher above 1.3000, although the weak numbers failed to dent global risk appetite levels measurably.
As a result, they comment that JPY continued to flame out against its cohorts with EUR/JPY surging above 1.2700 and GBP/JPY brushing against 150.00. Looking ahead, Ng expects market influences to remain primarily currency specific. For example, he writes, “Any negativity attached to the USD post-NFP is not expected to afflict the USD/JPY, with markets likely to continue to trade off the more aggressive than expected BOJ moves from last week.” On this front, he notes further yen weakness across the board in early Asia on Monday following a media report that the BOJ would likely purchase longer-date JGB (to the tune of JPY1.2tn) as early as this week. Apart from the global data calendar, he expects also the FOMC minutes due this week to shed further light on USD prospects, especially from the perspective of the Fed’s thinking on prospects for an exit strategy. However, he feels that the environment will likely be complicated by the US labor market numbers, with the growth-linked currencies (AUD, NZD, CAD) putting in an underwhelming performance on Friday as global growth concerns continued to circulate. He finishes by adding, “Notably, AUD/USD dropped below 1.0400 to end lower on the week while the CAD also weakened against the USD on a disappointing Canadian labor market report.”
As a result, they comment that JPY continued to flame out against its cohorts with EUR/JPY surging above 1.2700 and GBP/JPY brushing against 150.00. Looking ahead, Ng expects market influences to remain primarily currency specific. For example, he writes, “Any negativity attached to the USD post-NFP is not expected to afflict the USD/JPY, with markets likely to continue to trade off the more aggressive than expected BOJ moves from last week.” On this front, he notes further yen weakness across the board in early Asia on Monday following a media report that the BOJ would likely purchase longer-date JGB (to the tune of JPY1.2tn) as early as this week. Apart from the global data calendar, he expects also the FOMC minutes due this week to shed further light on USD prospects, especially from the perspective of the Fed’s thinking on prospects for an exit strategy. However, he feels that the environment will likely be complicated by the US labor market numbers, with the growth-linked currencies (AUD, NZD, CAD) putting in an underwhelming performance on Friday as global growth concerns continued to circulate. He finishes by adding, “Notably, AUD/USD dropped below 1.0400 to end lower on the week while the CAD also weakened against the USD on a disappointing Canadian labor market report.”