USD stays in weak tone despite of higher USDJPY and the retracing effect in commodities. The higher effect in EUR lead the weakening of USD with short term close over 1.25 that driven more upside momentum for 1.27-1.28 region. As the market breaks down the FOMC meeting, a better ADP data and monetary policy in US setting are in the same path with 3 hikes for the year.
But ECB will be in risk for the remaining earlier exit and Eurozone economy sound will be boost with more action from the ECB on market perception. And that it will make Euro assets more attractive which driven the capital inflow of the Eurozone persistence. EUR support go higher up to 1.2380-90 in short term and break in 1.2335-40 which expected to drive the next upside risk.
GBP still worries for the Brexit trade negotiation and its relationship with UK as the market concerns for London city about the losing of their financial status. As this hints for more uncertainty and downside risk for growth in medium term that it will drive more GBP and GBP cross selling in near term.
USDJPY firms up upon BOJ increases the bond buying and keeping the YCC policy unchanged with unlimited buying 10 years JGB around 0.11%. Technically USDJPY holds a pivot of 108 and will see some rebound momentum when the price goes over 110 as it can stabilize the pair in short term.
Today US Non-Farm Payroll data (expected 180k, unemployment rate 4.1%, average hourly earnings +0.3%) will be the focus but the factory order, ISM NY index and Michigan Consumer Sentiment Index together with stock/bond market move might also have some small impact.