Citi discusses its expectations for tomorrow's jobs report for the month of September. Citi also notes renewed interest in bullish JPY exposure against USD and on the crosses.
"As for NFP, Citi Economics expects that 155k jobs added in September, consistent with still-solid overall activity. The clear risk for markets on Friday is if the jobs number for September surprises to the downside. Especially following the weak reading for September ISM manufacturing, released earlier this week, this would increase concerns that weakness in the industrial sector is spreading to the broader economy," Citi notes.
"CitiFX Sales notes has seen renewed interest in USDJPY downside, along with CrossJPY (EURJPY, AUDJPY and CADJPY). With positioning much cleaner than in August (both anecdotally and from our positioning indicator), holding long JPY here seems to make sense," Citi adds.