In FX, USD/JPY is the main mover on the day with the pair up 0.9% to 156.20 currently. Besides that, USD/CHF is up slightly by 0.3% to 0.8925 amid a test of key technical support here. But outside of that, the changes are minimal with narrow ranges still prevailing on the day. I mean, EUR/USD is still contained within a 15 pips range so that does say quite a bit.
In other markets, bonds are also settling down a bit after the strong bids since last week. 10-year yields in the US are up 1.3 bps to 4.349% amid another test of the critical juncture here. As for stocks, European indices are up slightly in catching up to the Wall Street rebound yesterday. US futures are a touch higher but nothing outstanding as of yet.
All eyes now are on the US ADP employment roulette data coming up later. This is a report that I’ve grown to detest over the years and I’m sure I am not alone on that. It has lost much of its importance in terms of relating to the overall labour market report on Friday. And the numbers here can even come up to be rather random at times. Hence, the roulette table meme.
Today will be no different with the estimated reading seen at 175K for May, down from the 192K in April.
Still, it is one that markets will look towards to make any moves. Or at least the algos will. That especially if there is a big miss or beat on the estimate. So, do keep an eye out for the data later even if it might not be one that predicts well what to expect from Friday’s non-farm payrolls.
