The dollar is keeping steadier ahead of European morning trade
It is all about the US non-farm payrolls report later today as the market will be looking forward to that in order to gather more clues on any “substantial further progress” in labour market conditions, which the Fed is looking for.
USD/JPY saw a solid bounce yesterday and is up slightly to 109.85 currently as 10-year Treasury yields also climbed back above 1.20% (currently @ 1.238%).
In my view, that is saying the bond market is expecting today’s report to at least give confirmation or at least spur a more intense debate that the Fed is able to derive some added “substantial further progress” later today.
In other words, it seems like the market is positioned for a more positive report.
Elsewhere, narrow ranges are mostly prevailing among major currencies but the dollar is a touch higher across the board. EUR/USD is down to 1.1820 but keeps within a 15 pips range as we look towards the session ahead.
The aussie is the laggard as it is down to 0.7385 as buyers struggle a little to try and keep a push above the 0.7400 level for the time being.