The LFB submits:
Asian equity trade held support overnight, and although still dramatically oversold offered enough momentum to move S/P futures trade off the pivotal 1050 area. If global equities move higher ahead of the ADP U.S. employment numbers at 08:15 ET on Wednesday the USD will have a hard time getting bought. Oil traders moved WTI (West Texas Intermediate) off 71.50 support, in a move that was aided by positive overnight Asian macro-economic reads.
AUD/USD triggered long bids off 0.8900 support in response to strong GDP numbers, and that move leaves behind a solid base for aussie bulls to work higher from. Usd/Cad is moving off a triple-top resistance area at 1.0690 that may instigate a sustainable move lower if WTI moves up through 72.50 and S/P traders hold 1050 support.
GBP/USD is looking as though it has exhausted sellers in the near-term, with a move long through 1.5385 offering decent upside positional if the market sells the dollar index on Wednesday. EUR/USD and USD/CHF are involved in a regional play that draws in EUR/CHF revaluations. USD/JPY looks bullish.
Australian GDP printing at a very bullish 1.2% read, which was double the previous number, and should be bullish for the pair if global equity trade moves higher. The trading week will pick up momentum from Wednesday with a raft of red-flag economic releases scheduled to hit the wires, culminating with the Friday release of Non-farm Payroll numbers.
Love it or loathe it, the market reaction to the NFP numbers has set the tone for each month of trade going all the way back to December 2009. The antiquated, disjointed, heavily-revised survey seems to belong in the back pages of a financial newspaper, rather than front and center of global market traded direction.
However, the instant-reward, low-attention span world that we live in tends to feed well of NFP sound-bites, and like a slow-motion train wreck, it is hard to stop the momentum once it gets going.
Equity and commodity markets are under-funded and running on fumes at the moment, and that makes for increased volatility in the forex traded arena.
Disclosure: None