US Non-farm payroll report is in focus today, as investors are looking for further indications about the strength of the jobs sector, following the private employment report, released few days ago that showed less than expected rise. Traders remain cautious ahead of today’s jobs report and U.S. presidential election next week, as the news about FBI’s probe on Hillary Clinton’s private email use while she was secretary of state, sparked fresh uncertainty over Mrs. Clinton’s election prospects ahead of the November 8 vote, amid fears over the implications of a victory for Republican candidate Donald Trump.

The dollar remained steady in early Friday’s trading, holding above fresh lows against the basket of major currencies, as traders are awaiting release of US jobs data. Forecasts show economy created 175,000 jobs in October, compared to September’s 156,000.
Upbeat release today could further boost hopes of U.S. rate hike in December
The dollar index stood around 97.25 in late hours of Asia, holding within 20-pips range during the session. The index was in red during the past week, as investors moved in risk-off mode after news from last Friday.

British pound was the top performer on Thursday and rose close to 1.2500 barrier against the dollar after Bank of England kept interest rates unchanged at record lows, but signalled prospects for possible rate hike, on rising inflation and growth.
Also, England’s high court ruled that the government needs approval from parliament before taking steps of official divorce from the European Union.
British pound was up 1.32% against the greenback on rally to fresh one-month high at 1.2492, marking the biggest daily gain since 16 August. Yesterday’s rally broke above some strong technical barriers and generated strong bullish signals for further advance.
With fundamentals and technicals being supportive for British pound, focus is turning to the outside factors, such as today’s US jobs data and presidential election that would give clearer signals about near-term direction.

The Euro traded within narrow range in Asia on Friday, holding around 1.1100 handle and off yesterday’s fresh recovery high at 1.1126 against dollar. The single currency benefited from weaker dollar and rose over 1% during the past week, also being on track for the second consecutive bullish weekly close.

The US dollar bounced to 103.00 zone from fresh one-month low against Japanese yen at 102.53, as the pair is taking a breather after steep fall during past few days. The pair was up 0.17% in Asia, but down 1.43% for the week so far, awaiting numbers from US NFP data for fresh action.

Gold was trading around $1300 handle in Early Europe, marginally lower in Asia, on consolidation under fresh high at $1307, hit on recent risk-aversion rally and eyeing today’s data from U.S.
Gold was up 1.8% for the week so far and on track for the third straight bullish week, as uncertainty ahead of U.S. election prompted investors into safe-haven instruments.

Crude oil prices remain in steep descend and were on course for the sixth straight day in red on Friday, dragged lower by a record surge in U.S. crude inventories and doubts over the ability of producers to coordinate output cuts that were previously agreed.

US Crude oil hit fresh five-week low at 44.28, where strong technical support lies, with prospects for further easing. Oil price is on track for the weakest weekly performance since early July and for the second consecutive week in red.

Asian shares slipped on Friday as the dollar nursed losses in a week marked by growing uncertainty about the outcome of the U.S. presidential election.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4% after brushing its lowest levels since early August. The Index looked set for a loss of 1.7% for the week.

Japan’s Nikkei225 was down 0.59% overnight, Australian Index was flat and Hong Kong slipped 0.48% in Asian session on Friday.

Negative sentiment from Asia spilled over into Europe’s markets that opened lower on Friday.

FTSE100 was down 0.67% from opening; CAC40 slipped 0.59%, while DAX was down 0.68% in early trading.

European stocks are firmly in red and indexes on track for strong bearish weekly close.
Highlights of the day

Full calendar on Thursday promises a lot of action again, with focus on BOE’s monetary policy report in Europe and US weekly jobless claims and Non-Manufacturing PMI data in the US session.
Asia
Australian retail sales showed mixed results. September’s retail sales came at 0.6%, above forecast at 0.4% and Aug 0.5%, but quarterly results disappointed, as retail sales fall to -0.1% in Q3, well below forecast at 0.4% and 0.3% in Q2.

Europe
Services PMI data from EU countries are in focus in European session, with forecasts being generally in line with previous month’s numbers.

America
US Non-farm payrolls is key release today, due at 12:30. Forecast for October shows 175,000 new jobs created, above September’s 156,000. Upbeat numbers are expected to boost the dollar and cement hopes for U.S. rate hike next month.
Unemployment rate is expected to tick lower to 4.9% in October vs 5.0% unemployment in September.

Important levels
GBPUSD
Cable rose strongly on Thursday, driven by news and improving technicals. The rally peaked at 1.2492, after firm close above strong technical barrier at 1.2401. The pair is looking for break above resistances at 1.2500 zone, for extension towards next significant barrier at 1.2561.
Immediate support lies at 1.2447, followed by 1.2401 and previous range top at 1.2330.
EURUSD
The price is consolidating under fresh recovery high at 1.1126, after repeated failure to close above important technical barrier at 1.1104. Outlook remains bullish and favors final push towards targets at 1.1157/76.
Initial support lies at 1.1085, followed by strong support at 1.1050 zone, which is expected to contain dips.
US jobs data will give clearer signals about near-term direction., Market Analysis