FX Update: The Dollar has been traded firmer
FX Update: The Dollar has been traded firmer into the London interbank open, edging out a three day high against the Yen and making moderate advancements against the Euro, Canadian dollar and other currencies. USD-JPY's high is 109.73, analysts retraces about a third of the safe-haven driven declines the pair saw in the early part of the week. EUR-USD has come within a pip of yesterday's low at 1.1273, with market narratives focus on 10-year Bund yields flirtation with -0.400% offsetting the Fed's course to further easing. AUD-USD has posted a two-day low at 0.7015, with the pair giving back nearly a third of the gains seen from the low seen in the immediate wake of the RBA rate cut on Tuesday. USD-CAD has lifted back above 1.3050 after posting a fresh nine-month low at 1.3037 yesterday. A softening in oil prices looks to have helped take some of the wind out of the Canadian dollar's sails. The focus today is squarely on the release of the June U.S. employment report. Downside risk abounds. Analysts expect a 160k June nonfarm payroll rise (median 165k) after the disappointing 75k increase in May. Analysts see a steady jobless rate alongside gains of 0.2% for hours-worked and 0.3% for hourly earnings (median same). Our June estimate is just below the 164k year-to-date average, and well under the 223k average in 2018.