Daily Market Report - 05/10/2015

The dollar posted losses against GBP and EUR on Friday, after weak U.S. jobs data led traders to pare bets that the Federal Reserve was poised to hike interest rates in December 2015. 

The key nonfarm payrolls report showed that employers added only 142,000 jobs last month, falling far short of economists' consensus expectation for a rise of 203,000 jobs, according to a Reuters poll. Moreover, the August figures were revised sharply lower. That raised doubts that the U.S. economy was strong enough to justify the Fed's long-awaited interest rate increase, which would be the first since 2006.

China is studying plans to curb currency speculation even as it seeks to quicken the process of making the yuan trade freely, Yi Gang, a deputy central bank governor said. 

Beijing will further open up its capital markets and develop its foreign exchange market as it aims to "accelerate the renminbi convertibility on the capital account", Yi Gang wrote in an article published in China Finance magazine, a central bank publication. 

While the yuan is already convertible under China's current account, the broadest measure of trade in goods and services, the capital account, which covers portfolio investment and borrowing, is still subject to restrictions due to worries about abrupt capital flight and hot money inflows. 

Chinese officials have not given a firm timetable for making the yuan freely tradeable, but have pledged financial reforms to make the yuan more convertible as they push for it be included in the International Monetary Fund's Special Drawing Rights (SDRs) basket. 

Making the Yuan freely tradeable could increase speculative behavior, so to pre-emptively curb this, Chinese authorities are also evaluating non-interest bearing reserve requirement and foreign exchange trading fees as a means of curbing speculation. 

Key Announcements
GBP - 09:30 - Markit Services PMI (Purchasing Managers Index) for September expected to rise to 56.0 from 55.6
EUR - 10:00 - Retail Sales (Year on Year) expected to fall to 1.8% from 2.7%
USD - 14:45 - Markit Services PMI for September expected to rise to 55.7 from 55.6
USD - 15:00 - ISM Non-Manufacturing PMI  for September expected to fall to 57.7 from 59.0