The current factors within European session

Today, the main problem of the market seems to be in the US, the upcoming NFP. Data on job creation are important, but this will be a key factor for the Fed as e accustomed table. Much more important is what we will see in current reports on corporate profits because they apparently belong and reinforce concerns. The problem for the Fed will remain valid, no matter  the publication NFP, because it is hidden in productivity rather than employment.

Asian markets started the new quarter on the back foot Friday, trading lower despite better-than-expected China manufacturing surveys, as a reading on Japan's economy disappointed and traders awaited U.S. nonfarm payrolls data later.

European markets traded sharply lower on Friday ahead of the closely-watched U.S. jobs data which could reveal more about the state of health of the U.S. economy.  Traders in the European session it is important to follow the Retail Sales in February from Switzerland (in 10:15), PMI from Spain, Italy, France, Germany and summarized for the euro area (between 10:15 to 11:00) and British Manufacturing PMI (Mar) (at 11:30), because they will have a direct impact on current exchange movements.

Another factor today is that the ECB officially launched additional purchases of bonds by 20 billion. Per month more as part of the next phase of its failure so far to fight deflation. It predicts that 5 billion. Will be focused on corporate debt.

Expected yield on German government bonds still continue the downward trend, with very smooth bond will rise in price. Yields on 10-year German government bonds is important because they are considered to euro-equivalent closest to the notional risk-free asset. I expect that the yield on 10-year German government bonds is about to become negative after Switzerland and Japan.