As we suggested would happen early Thursday yesterday developed into a day of consolidation for most asset classes after strong gains in Wednesday’s trade. The dollar index was no different as it traded in a relatively range bound fashion. We encountered a tad of volatility just ahead of the US stock open as US weekly jobless data came in mildly better and ECB President Trichet gave his press conference. However, despite this whipsaw price action things settled down again for most of the rest of the day and into Asia, as currencies trade sideways ahead of today’s Non-Farm Payrolls reports.
Looking ahead, if Asian price action is anything to go by we are in for a quiet day until the US session when things are likely to hot up ahead of the jobs data. Turning our eyes to a weekly chart for a moment, the index has traded in a relatively narrow range this week and while it is trading lower at the moment for the week a surprise in the NFPs could easily spark a positive rally and a higher close.
Written by Jonathan Granby, DailyFX Research Team
If you wish to receive Joel’s reports in a more timely fashion email jskruger@fxcm.com and you will be added to the distribution list.
If you wish to discuss this or any other topic feel free to visit our Forum Page.
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.
