The US dollar continues to consolidate within wide ranges, but remains relatively strong across the majors. However, on Friday morning, US non-farm payrolls are anticipated to fall by a whopping 330,000, which would be the worst decline since 1982, while the unemployment rate is forecasted to reach a fresh 15-year high. Will this news trigger a sharp decline in the greenback, or will the forex market consolidation continue?
Forex traders are likely to look past a noticeably uneventful economic calendar to focus on the upcoming US Non Farm Payrolls release late into the session. German Factory Orders data is the only scheduled release, with expectations calling for a -11.2% decline in the year to October. The Euro and British Pound retraced lower in overnight trading to consolidate gains in New York hours.
The technical forecast for the NZDUSD continues to favor a bearish outlook for the pair, and the kiwi-dollar may face increased selling pressures over the near-term as demands for carry trades falter.
The U.S. economy is expected to have given back another 334,000 jobs in November which would bring the total for the year to over 1.5 million. An inline print would equal the largest monthly decline since 1982, surpassing the worst levels following 9/11.
Both the pound and euro gain ground after deep rate cuts. Can the NFPs finally regain its title as the currency market's top market mover?