EURO Confinement A Game Winner Ahead Of NFP

Everyone will try and keep all their necessary trading very close to home and pare questionable positions ahead of tomorrow's highly anticipated US non-farm payroll report. Already the below consensus US ADP and relatively soft reading on the ISM non-manufacturing employment index may have begun to temper some investors expectations for tomorrow's final payrolls print. Both the equities and FI class are expected to remain range-bound today in anticipation of tomorrow's expected release of +165k new jobs.

The mighty 'buck' has been pulling back somewhat after yesterday's ADP report and from here on in, unless completely necessary, there is a strong likelihood that the market will tread water until tomorrow's North American payrolls are released. NFP is the broadest gauge of job creation and a strong reading will put many doubts to rest about the US growth traction. However, a below-consensus non-farm print (150k), in combination with the buildup in Fed tapering expectations...