USD: Paying the Price for Payrolls

The USD is retreating ahead of January Non-farm payrolls as markets price in Fed easing, while JPY and AUD outperform on domestic political and central bank factors.

Key Takeaways

• 1.USD is retreating as markets price in higher probability of Fed rate cuts following weak retail sales and ADP data.
• 2.Crédit Agricole forecasts a 90k gain in headline Non-farm payrolls, exceeding consensus (68k) and 'whisper' (42k) numbers.
• 3.The JPY is outperforming G10 currencies post-election, driven by Nikkei gains and a narrowing US-Japan rate differential.

Table of Contents

• Asia overnight
• USD: paying the price for payrolls
• JPY: flat out outperforming
• AUD: helped by a hawkish Hauser, what about Hunter?
• Latest publications
• Open trade recommendations
• Key events
• Red Mount Analytics
• Global Markets Research contact details
• Certification
• Foreign exchange disclosure statement to clients of CACIB
• Valuation and methodology
• Disclaimer

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