USD
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

USD
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.

CNY
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