European morning wrap: Buy dollars, wear diamonds!!

Author: Gerry Davies | Category: News

Author: Gerry Davies

Greenback firm across the board this morning, underpinned by yesterdays FOMC minutes and expectations of  strong US non-farm payrolls later today.

US treasury yields continue firm,  the benchmark 10 year yield presently up at 1.9577% from the 1.9290% which greeted me first thing.

EUR/USD down at 1.3010 from early 1.3040.  Selling by an Asian central bank as European traders were arriving at their desks set the tone.  But for the most part its been pretty lacklustre fare, the euro bears unable so far to pierce the psychological 1.3000 line.  Talk of sell stops below there and more through 1.2980.

USD/JPY continues its’  relentless march northward,  touted barrier option interest at 88.00 taken out with consummate ease.   We’re up at 88.25 from early 87.75  having been as high as 88.34.

Cable down at 1.6017 from early 1.6075.   The release of very poor UK services PMI data (see above) didn’t help matters any.  Talk of buy orders clustered now down at 1.5990-1.6010, sell stops below there.