Today is NFP day! Expectations are for a decent report, consistent with further tightening in the US labor market. This could push the probability for a March hike by the Fed even higher. Overnight, the BoJ offered to buy unlimited 10-year JGBs after yields edged above 0.1%.
Investors are Sitting on their Hands Waiting for the US Employment Report
The dollar was lower against most of its G10 peers for once again. It outperformed only the AUD and JPY, while it traded virtually unchanged against NZD. The Aussie was the main loser yesterday, with no clear trigger behind the move. We would suspect that as the RBA meeting draws closer, the market may have started getting worried that the Bank could bring back to light concerns over its appreciation.
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