All this and more is available on our video blog at  http://www.worldfirst.com/blog

Markets await today’s Non-Farm payrolls number with baited breath as it has the potential to answer so many questions that the markets have been posed over the past few days and weeks: will we see another leg higher for GBP/USD or is this the indicator that gives it that kick lower? Are stock markets overbought and in need of a sell off or are investors still happy to buy dips? Will the euro continue its recent strength against the dollar and pound or is it also to weal to mount any meaningful attack?

Consensus views sit at around 200k – 210k jobs lost in the month of August. In a normal market it was difficult to predict the market moves through Non-Farms measure but in this topsy-turvy market it has become nigh on impossible. But sitting on the fence will only give you splinters where you don’t want them so here I go.

The ‘new normal’ correlation between USD and data was bad data = USD strength and vice versa. However the recent jobs figures (ADP, Initial and last month’s NFP) suggested a reversal of this. With our beliefs in a slightly better than estimate figure we therefore expect dollar strength in the aftermath of the release.

Looking back on yesterday the pound was helped higher by a buoyant services sector. UK services PMI was released at 54.1 vs 53.9 exp. This obviously makes some ground up from the poor manufacturing and construction data.

The ECB meeting was, as we thought, very steady as she goes. They wanted of a ‘bumpy road’ ahead and extended lending facilities at the base rate of 1%. Trichet is in London for the weekend’s G20 meeting of Finance Ministers and has written in today’s FT announcing that the ECB has mapped out an exit strategy from its non-standard measures.

You can also follow us live on Twitter at http://twitter.com/World_First