Daily FX Trading Update: US NFP Coming Up – Oct 2, 2015

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Daily FX Trading Update: US NFP Coming Up - Oct 2, 2015
USD
The US dollar had a mixed performance in recent trading sessions, as traders are probably squaring off their positions ahead of the US NFP release today. Data from the US came in mostly weaker than expected, with the initial jobless claims report showing a 277K figure and the ISM manufacturing PMI falling from 51.1 to 50.2. The jobs report is expected to show a 201K increase in hiring for September, up from the previous 173K gain. Stronger than expected figures could fuel rate hike expectations for the Fed, possibly resulting to a dollar rally.
EUR
The euro regained a bit of ground in recent trading when data from the euro zone came in mostly in line with expectations. Only the Italian manufacturing PMI missed the mark while the German and French final PMI readings were unchanged. The Spanish unemployment change report is up for release today and a 17.9K increase in joblessness is eyed.
GBP
The pound staged a small rebound yesterday when the UK manufacturing PMI came in line with expectations. The figure fell from 51.6 to 51.5 in September, slightly higher than the projected 51.3 figure. For today, the construction PMI is due and a climb from 57.3 to 57.5 is expected, although traders might want to wait until the release of the services PMI next week.
CHF
The franc was still in a weak spot after Switzerland reported a weaker than expected retail sales figure. Consumer spending fell by 0.3% year-over-year in August instead of showing the projected 0.3% increase. There are no reports due from the Swiss economy today.
JPY
The yen gave up ground to its forex rivals, as data from Japan has been coming in weaker than expected. Earlier today, the country reported an increase in joblessness, as the unemployment rate ticked up from 3.3% to 3.4%. Household spending, on the other hand, came in strong with a 2.9% gain versus the projected 0.4% uptick. There are no other reports lined up from Japan, leaving market sentiment in control of yen price action.
Commodity Currencies (AUD, NZD, CAD)
The comdolls strengthened in recent trading sessions, after Chinese PMI readings came in mostly in line with expectations. Australia reported a 0.4% increase in retail sales as expected, enough to bounce back from the previous 0.1% decline. No other reports are lined up from the comdoll economies today, which suggests that they might take their cues from commodity movements.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.