Forex Today: Yen dumped amid Asia risk-on, UK IP, US NFP - Key

Risk-on trades dominated Asia on NFP Friday, although trading ranges were limited across the fx markets amid typical nervousness witnessed ahead of the US labor market report. However, USD/JPY was an exception, as it experienced some volatility on the back of Yen sellers returning to the markets, pushing the rate to fresh multi-week tops near 115.50 levels. Meanwhile, comments from PBOC officials, defending the Chinese Yuan, filled in an otherwise data-quiet Asian calendar.

Focus now shifts towards the economic events due out from the Euroland, with only the German trade balance to be reported ahead of the European open. The UK docket has the industrial production and goods trade balance data. The NA calendar remains action-packed, with the all-important US payrolls data alongside the Canadian employment report will be lined up for release, wrapping up pre-FOMC week.

Main topics in Asia

Goldman Sachs boosts China 2017 GDP forecast to 6.6% vs. 6.5% prev

Analysts Goldman Sachs revised higher its 2017 growth forecasts for China to 6.6% vs. 6.5% previous.

Gold slumps to fresh 5-week lows below $ 1200, NFP - Key

Gold prices on Comex extend its week-long run of declines and remains on track to book second straight weekly loss, as global central bankers’ are tilting towards hawkish policy stance, with the latest one being the ECB.

PBOC’s Zhou: Monetary policy currently prudent and neutral

The PBOC governor Zhou is now making comments on the central bank’s monetary policy program, as cited by Reuters.

US 10-year treasury yield hit 12-week high

The sell-off in the treasury yield continues on growing speculation of faster/sequential fed rate hikes.

Key focus for the day ahead                                                     

EUR/USD flirts with 1.0600 ahead of German data

The immediate focus now remains on the German trade balance and Euro group’s ECOFIN meetings for fresh impetus on the Euro.

UK: Busy day with trade, IP, and construction data releases for the month of January - TDS

Analysts at TDS expects that its going to be a busy day for UK with trade, IP, and construction data releases for the month of January.

NFP to increase 200k, all in the private sector - Barclays

Latest research note from Barclays briefs on the expectations from today’s US labor market report, which will be published at 1330GMT.

NFP preview: do NFPs matter now that a rate hike is signed, sealed and yet to be delivered?

This Friday at 1330 GMT the eagerly awaited February NFP report is scheduled to be released. The market is expecting a reading of 197k, while the unemployment rate is expected to fall further to 4.7% from 4.8%, and earnings growth is set to rise to 2.7%.