The GFK German Consumer confidence indicator declined in April to 2.4 from 2.6 the month prior slightly below market expectations of 2.4. Although off the lows set in market panic of September of last year, the confidence gauge remains mired near the bottom of its range as consumers in Eurozone’s largest economy continue to be plagued by rising unemployment and worry over economic growth going forward.

The US dollar is selling off aggressively ahead of Friday’s non-farm payrolls report on the fear that for the second month in a row, job losses may have topped 500k. The recent moves in the currency and equity markets suggest that everyone expects a very weak labor market report. Although the consensus forecast is -520k, the whisper number is closer to -650k to -700k. Sentiment is strongly skewed in one direction which can be dangerous considering the fact that some of the leading indicators for non-farm payrolls call for a rebound. The Non-farm payrolls report is the most market moving release for the currency market and it should live up to its volatility inducing reputation.