The month-end, quarter-end ‘fix mess’ is now over. Welcome to the beginning of the ‘carry’ month, which April is historically know for. This morning, the market has the grandaddy of economic data releases to contend with, non-farm payroll, followed by ISM manufacturing and the battle of Fed speakers.
The market expects a somewhat robust payrolls headline (+200k), a steady unemployment rate (+8.9) and the ISM to soften a tad, but in line with expectations, which would be consistent with a strong growth outlook.
Today’s we get more Fed speakers, Plosser and Fisher, the market know their views, it’s Dudley, who will be front and center. Up to now he has had close ties with Bernanke’s dovish stance, so expect his copy to balance out some of the recent hawkish comments.
The US$ is little changed in the O/N trading session. Currently, it is lower against 8 of the 16 most actively traded currencies in an ‘orderly’ session.
