Trading ranges remain relatively narrow, with changes to the main currency pairs against the dollar being less than 0.1% at the beginning of the session. Markets are generally quiet, with US futures rising 0.2%, while yields on government securities remain unchanged.
Exactly two things will attract the attention of today's traders, the first being the payroll in the United States at 15:30.
We can all agree that the conditions of the US labor market remain stable, so data will hardly be able to tell us anything new, market participants will be focused on the Fed's response to data.
Earlier this week, we received a shock from the employment report from ADP, but this was offset by ISM non-manufacturing figures that showed an increase in employment. I suppose the latter are a more accurate reflection of what we will see this afternoon.
The other thing that the traders will focus on will be the US-Mexico talks. Titles remain divided, but there is no compromise between the two sides. The talks will continue today, with the danger of tariffs weighing on markets.
For this reason, I expect a quiet and cautious session in Europe, as traders will have little incentive to pursue key moves.
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