Data form the US was rather mixed over the week, although the markets were always going to be looking towards Friday’s all important non- farm payroll data with most market commentators expecting a figure above 200,000 and that the US unemployment rate will drop again this time below 5% hopefully to 4.9%. 

Recent US dollar strength has stalled following the dovish tone to the minutes of the December FOMC ( Federal Open Market Committee) meeting.   

The Institute for Supply Management surveys on US Manufacturing and Non-Manufacturing did show a contrast of outcomes. The Manufacturing survey contracted for a second consecutive month with a reading of 48.2. The Non-Manufacturing sector posted its 71st consecutive months of growth albeit December’s result at 55.3 was lighter by 0.6 percentage points on November’s outcome. 

The ADP national employment report private payroll release was way ahead of expectations with 257,000 jobs added between November and December, helping to fuel higher expectations of Friday afternoon’s non-farm outcome.   

The dollar has made great ground against sterling but has given up recent ground against the Euro as China’s stock market wobbles impact global markets and risk aversion take hold with the single currency taking strong benefit of investors choice of safety.