US dollarThe dollar looked set to post its best week in two months on Friday, buoyed by easing Middle East tensions and upbeat U.S. economic data as investors turn to crucial jobs figures due later in the day.
Markets have calmed as the US and Iran stepped away from the brink of war on Wednesday. Headlines from the Middle East focus on the crash of the Ukrainian civilian jet and suspicion that an Iranian air-to-surface missile downed it by mistake.
The major currencies are keeping in more narrow ranges with little change observed overall as we begin European trading. For some context, EUR/USD is resting in just a 9 pips range between 1.1102 and 1.1111 thus far. USD/JPY is just a little higher at 109.58 currently, while GBP/USD is trying to recover from a dovish speech by Mark Carney, Governor of the Bank of England.
The risk mood is also keeping steadier with bonds a tad weaker while equities are a little higher as well. Looking ahead, it is all about the anticipation and countdown to the US non-farm payrolls data. Given that markets have phased out geopolitical tensions, stable price action is expected to prevail in the European morning session.
Markets gear up for the all-important US Non-Farm Payrolls data due later in the NA session at 13:30 GMT that will set the direction for the greenback in the coming weeks. There are no significant economic releases from the European calendar and the UK politics-related headlines surrounding Brexit combined with any developments on the US-China trade deal and Mid-East crisis should offer some incentives to the traders.
Also, in focus remains the Canadian Employment data lined up for release alongside the US labour market report. Meanwhile, oil markets will watch out for the Baker Hughes US Oil Rig Count dropping in at 18:00 GMT.
Gold prices continued to fall on Friday as U.S.-Iran tensions deescalated, sending relief to market. Oil prices also continued to fall and were set to record their first weekly loss since November as U.S.-Iran conflict cooled.