Market waiting for US jobs report
Written by Gerry Davies
March 4, 2011 at 11:42 GMT

* SNB’s Jordan: Current interest rate level not sustainable in medium-term
* ECB’s Wellink: Sooner or later ECB should raise rates when inflationary pressure gets too high
* Gillard concern at aussie shows ‘Dutch disease’ risk – Bloomberg
* UK Halifax house price index -0.9% m/m in February, weaker than median forecast of -0.5%. Down -2.8% in 3 months to February vs year ago, weaker than median forecast of -2.5%
* UK new car registrations down 7.7% in Febraury – SMMT
* ECB’s Weber: World growth has become increasingly unbalanced in recent years
* ECB’s Bini Smaghi: Faster growth in emerging economies pushing up commodity prices permanently
* US Treasury’s Brainard: China’s currency remains substantially undervalued

A few moments of activity, but generally pretty lacklustre fare as the market awaits the release of this afternoon’s U.S. jobs report.

EUR/USD touch firmer at 1.3970 from early 1.3955. BIS seen buying in the 1.3950/55 area. Didn’t impact much, if at all. The pairing did get a slight lift however when comments from ECB’s Wellink hit the wires (see above) Two little words “raise rates” will have stirred a few into action, but it was a half-hearted effort. Guess a 25 bps ECB rate hike at next months April 7 ECB meet is already caste in stone for many.

Sell orders well-documented 13980/00. Barrier option interest 1.4000. Buy stops seen through 1.4015. Buy orders down at 1.3900/20, stops below there.

Cable unchanged at 1.6275. Did see sell-off in the wake of poor Halifax house price data, which tripped stops through 1.6250 and got us as low as 1.6236. UK clearer and large US custodial then stepped in buying and helped engineer a recovery.

More stops seen through 1.6210. Sell orders 1.6340/50, just infront of 1.6350 barrier option interest.

USD/CHF down slightly at .9295 from early .9320, EUR/CHF down at 1.2985 from around 1.3005. Hawish comment from SNB’s Jordan (see above) lent swissy some support, but it wasn’t anything too major.

USD/JPY marginally firmer at 82.60 from early 82.35. So far sell orders at 82.60/70 capping. More sell orders seen 82.90/00, buy stops just above there.