Wednesday, January 5, 2011

Greenback remains firm

Greenback remains firm, helped by strong US ADP/ ISM data, and rising UST yields - eye tom key US NFP. Many houses are ramming up the NFP forecast from 140-150K after the "treble" surprise in ADP to 297K from 100K exp. Not surprised to hear calls for +300K NFP - though could be disappointed. USD/JPY fixing at 83.38, having hit fresh 2-week highs of 83.41 earlier on Japanese fixing demand, highest since Dec 23 83.57. Offers 83.30-50 from Japan exporters, mega-city banks, eye sovereign offers. China PBoC fixes USD/CNY firmer at 6.6322, from 6.6192 - again showing "Flexibility" - as seen in recent days - higher USD/CNY fixing, followed by lower closing, and then higher fixing the next day again. Eye any widening of the 0.5% trading band. USD/CHF at 0.9669-70, off yest 2-week highs 0.9686. WL