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ECB fallout and NFP nerves - why the market is jittery

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The dovish comments on Thursday from Mario Draghi, president of the European Central Bank, saw heavy euro selling and increased risk sentiment. But in the late US and Asian sessions, Saxo's John Hardy says there was very weak risk sentiment. He says this could be a warning sign that there will be another round of deleveraging.

John says risk sentiment is key here in addition to the jobs' report that is published later this Friday. If there's weak risk sentiment and disappointing non farms' data, USDJPY will become the focus. Strong NFPs could see risk sentiment up and could be positive for the US dollar, he says.  He warns that this is a nervous market with the potential for volatility.

John discusses key levels in both USDJPY and EURUSD.