USDOLLAR Flag Top Tested as Attention Turns to US NFPs
- USDOLLAR Index nears flag resistance of 12063.
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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