Dollar Lower on Non Farm Payrolls Miss

The dollar is lower across the board at the start of this week trading after we had a low print for the Non Farm Payrolls on Friday night, the market was expecting +185 k and the headline figure came out at +138 k and this led to a sharp move lower against most of the majors. It had been a standard NFP Friday up to the data with the market trading in restricted ranges ahead of the release. This should lend an offered tone to the dollar as we start the week with traders looking for fresh levels to sell the greenback.

Elsewhere in the markets we did see a bit of a gap in the sterling this morning on the open as the market digested this weekend’s terror attack in the UK. The market gap wasn’t too substantial and is in the process of closing as we move into the morning’s trading but sterling traders will be looking at the attack’s affect on the election opinion polls today and will trade accordingly. Traders will also be noting that there seems to be a large amount of discrepancy with various polls coming out of the UK as we approach the election and will be adjusting their strategies accordingly.

Looking ahead to today and we do have a bit of fundamental data due out for the market to focus on. It’s quiet through the Asian session but we have a raft of PMI data due out in Europe today culminating in the UK Services PMI at 6.30 pm. Into the US session and traders attention will be on the ISM Non Manufacturing PMI due out at midnight.

This week has the possibility to be a very interesting and volatile one as we have a plethora of tier 1 data ahead as well as the UK election coming up on Thursday. Continued Geo-political concerns will also affect currency moves going forward this week and traders will be watching the news wires closely as usual for any change of risk sentiment.

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