EUR/USD, USD/JPY flows: Breather into payrolls and then key CPI next week
USD/JPY reset levels off 155 for now though pressure remains
EUR/USD still not far from 1.16 pivot that has held a week of dollar spillover
Payrolls focal point and then attention turns to the key US CPI next week
Some steadying of the ship into US payrolls, USD/JPY levelling out for now after finding support into 155.20/00 on the lurch down yesterday. Pressure is still seen in though from the latest action, with 154.85, 38.2% Fib, 154 to 152.10/00 all lower, as and when a period of correction/consolidation completes. Volatility wise 3m atm up to over 9 from the recent 6 lows and heading back to spring levels up at 10.
EUR/USD meanwhile still has been comparatively sedate and not too far adrift from the 1.16~ figure that has been anchoring it all week, even with all the spillover dollar pressure. The biggest expiries today are still at the 1.16 figure though with a fairly wide range around there for other clusters.
Payrolls clearly the big focal point today and not much interest in getting involved prior. Next week’s CPI could be more crucial though if today data is anything close to normal, especially given the likes of Fed's Waller have flagged it up as crucial for Sep.