If the reaction to yesterday’s hot ADP data is anything to go by, market participants are really looking for a theme to latch on to as we start the new year. But as a fair warning, it is just ADP numbers at the end of the day. The US non-farm payrolls report will be of better value in gauging labour market conditions and that could inject another round of volatility later today.
And we don’t have to wait too long before the actual key economic data release comes along, with US CPI data coming up next week.
USD/JPY remains a notable mover as it pushed up towards 134.00 and is sitting higher once again today. The pair is keeping that bounce off 130.00 and is now looking towards the late December highs around 134.45-50 next:
US futures are pointing to a slight recovery after yesterday’s stumble, with the S&P 500 falling by a little over 1%. S&P 500 futures are now up 0.4% so far today but all eyes are on the US non-farm payrolls to really dictate the action before the weekend.
At some point, there will be a trigger for stocks to break away from the recent consolidation range and that will see risk sentiment become a key driver in markets when that happens.