Market Update : NFP important today

Trichet made his usual comments that the ECB will be ‘accomodative’ on rates and economy remains expansionary.

Trichet neglected to use the word ‘strong vigilance’ which confirms to us that the next move by the ECB is a pause sending EUR slightly lower.

Today’s NFP is the main event as we have seen disappointing figures out of the US but inflation is still a fact of life for the Fed which we saw through Unit Labor Costs and the Prices Paid.

NFP is a good indicator which is set to continue.

Stocks continue to retrace but the entire move since Monday could be negated following a weak NFP.