U.S. Treasury yields declined Tuesday as investors look to jobs data that could provide hints about the state of the economy and the impact of the Federal Reserve monetary policy. The 10-year Treasury is down 4bps this morning. In the way of data, we will see ISM which focuses on the services industry and JOLTS job openings figures for the month of October. Toward the end of the week, we have non-farm payrolls and unemployment data.

Oil prices are starting to look heavy as crude prices break the floor around $74. The USD is rallying firmly again today after China received a negative credit outlook from rating agency Moody’s. European Central Bank board member Isabel Schnabel mentioned that inflation is near target and the ECB is at the end of its hiking cycle. Markets will be very focused on data for the rest of the week. While many feel the Fed is done hiking rates especially after Powell’s dovish comments last Friday, the NFP report has the potential to throw a wrench into things.

EUR/USD is down a bit on the day mainly due to overall USD strength. Inflation expectations among Eurozone consumers were left unchanged at 4% in October with a view of inflation staying steady for the next 12 months. The pair seems to be grinding lower as the data slowly comes in.

GBP/USD lost some ground on the day due to USD strength and some speculation about the BoE cutting interest rates. Risk off seems to be coming into play while data is digested.

USD/CAD is trading higher on the day amid softer crude oil prices. Investors remain sceptic that supply cuts by OPEC will have a significant impact on the back of a soft global economic outlook. All this is expected to dent fuel demand. Apart from this, expectations that the Bank of Canada will start cutting rates is weighing on the CAD.