USDOLLAR Flag Top Tested as Attention Turns to US NFPs
- USDOLLAR Index nears flag resistance of 12063.
- EURUSD, GBPUSD, and USDJPY all starting to participate in move.
Now that the BoE's "Super Thursday" is in the rearview mirror, market attention will quickly shift to the headline event of the week: the July US labor market update. Markets are fairly optimistic on the outcome of tomorrow's report, with the probability of a September rate hike having surged from 38% to 55% the past two days (per the Federal Funds future contract implied probabilities). Irrespective of the outcome, a bigger than normal burst of volatility seems guaranteed around the US labor market data.
See the above video for technical considerations in EURUSD, GBPUSD, USDJPY, AUDUSD, and the USDOLLAR Index.
--- Written by Christopher Vecchio, Currency Strategist
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