USD Fightback Continues with NFP to Come
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
We like to hear from you, so please feel free to drop us a comment. We also run weekly webinars with guest analysts.
Please subscribe to our Youtube channel (https://www.youtube.com/channel/UCa77H1ycVUAG_M3aToCPk8w)
And to our newsletter to stay up to date.
https://www.eightcap.com/en/market-analysis/
* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.
Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.
Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.