MORNING BRIEFING: US payrolls fuel market’s risk appetite

What’s new:
Asia: Positive jobs data keeps fuelling sentiment this morning as Equity indices go higher
Euro: Rediscovering the 1.2900 level, however still needs to consolidate
USD: The USD loses support on renewed risk appetite
NZD: Earthquake bill seems manageable as kiwi still enjoys support this morning

Today:



Rates in Asia and Indices:
EURUSD: 1.2918 - 1.2871.
USDCHF: 1.0184 - 1.0141.
GBPUSD: 1.5489- 1.5434.
EURJPY: 108.96 – 108.59.
USDJPY: 84.50 – 84.14.
DowJones: 10’447.93 +1.24%
NASDAQ: 2'233.75 +1.53%
S & P 500: 1'104.51 +1.32%
Nikkei: 9’301.32 +2.05%
Shanghai: 2'696.25 +1.54%
Gold: $ 1'250.80    
Crude Oil: $ 74.41

 
Comments:

The better than expected US payrolls report generated some risk appetite, which seemingly continued throughout the Asian session as well. Trading in currencies generally favoured the ‘riskier’ currencies although a look at currency movements suggests there might be some dampening of this risk appetite.

At the time of writing EUR/USD is trading at 1.2910, the pair has traded in the range of 1.2871- 1.2918 this morning, it has struggled to keep the 1.29 level and must still prove it can consolidate at this level. Although the EUR/USD seems to be eyeing the next resistance at 1.2925, we are slightly over bought on the 1hr and 4 hr charts – so it may take some time to proceed further. We must also remember that the US markets are on holiday today so that may prove to be restrictive on volumes.

The USD/JPY is trading at 84.20 at the time of writing, trading very much in range for the time being – trading between 84.19-84.50 this morning. Both USD and JPY lost support on the back of this renewed risk appetite, emanating from last Friday’s data, but the USD was worst off when compared to the Yen. RTFX TraderTip sees resistances lying at 85.04/85.66 and support at 83.98/83.55.

The NZD managed to foster support despite Saturday’s earthquake, the damage bill has been put at around 2 billion NZD but the longer term effect is being seen as limited.

The economic calendar is not very active today; investors will tend to be driven by sentiment.
 

Good day,


Rudolf Muscat
Trading desk

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