Non-farm payrolls boost USD

•     Non-farm payrolls boost USD

–    Payrolls slightly higher than expected, while previous months revised upwards

–    Average hourly earnings rise, confirming tight labor market

–    Fed funds expectations surge – market convinced of Fed tightening = USD-positive

•     Oil continues its recovery

–    Speculators closing out short positions; further gains likely if this continues

•     China’s trade hits record surplus in January

–    Due to falling imports, not rising exports; creates dilemma for authorities

•     Today:

–    Eurozone: German trade balance for December

–    Switzerland:  Weekly sight deposit data to give insight into intervention

–    US: Labor market conditions index for January

•     This week:

–    Thursday is Central Bank Day  Riksbank meets; we expect it to stand pat. That could be SEK-positive. Bank of England inflation report may predict deflation, which would be GBP-negative.