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Daily OANDA Forex Blog (Jul 02, 2009 at 06:04:37am) — by Dean Popplewell

All eyes will be down this morning checking the numbers, it’s like playing Bingo. Will you number come up? Despite China playing ‘he said, she said’ the Foreign Ministry supports the USD reserve currency idea, for the time being at least, has given the whiplashed currency newfound support ahead of the main event, NFP. The ECB will not surprise, with so much disagreement amongst policy members, all Trichet will do is elaborate in more detail on their implementation of their ‘unconventional measures’. With a holiday shortened week, the markets have so little time to confuse us even more. Remember ‘less bad is good’!

The US$ is stronger in the O/N trading session. Currently it is higher against 14 of the 16 most actively traded currencies in a ‘whippy’ illiquid trading range ahead of NFP.

The headline print for June’s ADP number yesterday should limit hopes for further declines in the pace of job losses. The print was more than anticipated (-473k vs. -394k), but the ‘positive’...