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USD Fightback Continues with NFP to Come

Published: 07.10.2022
by Joseph Jeffriess

Hi, and welcome to Friday’s update, traders. Today’s video concentrates on the USD as it continues to push a fightback, and we have US employment data to come out later tonight/today.

The markets are an amazing animal. Just a few days ago, we were all talking about the risk recovery and how good it was to see some solid green back on the boards. Once again, hawkish-fed comments have rained on the parade, and we have reverted back to a September normal. With the USD fighting back for a second day, US stocks and risk currencies retreating.

Looking at the chart, we can see that the USD index re-held the fast trend line and continues to push a potential continuation if factors support buyers. A key factor could be today’s US employment data, and the key could be just how good that data comes in at.

Normally good data would be celebrated but not in the current climate as if the data is too strong, that could continue to drive a hawkish fed and feed inflation and rate hikes. This should be good for the USD, and we could see the USD index test 113 or above. On the flip side, if we see a miss, this could put the brakes on the USD rally.

Since we also have Canadian data coming out, we have also touched on the USDCAD in today’s video analysis and included a quick update on the aftermath of this week’s OPEC meeting.

Today’s US and Canadian employment data will be released at 8:30 am EST. Thanks for watching today’s update, and we hope everyone has a great weekend.

Today’s Market Update Video 

 

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