US Dollar Forecast Difficult Ahead of Nonfarm Payrolls
Sharply choppy price action in the US Dollar and other currency pairs has made sentiment-based forecasts rather difficult in the past week, and prices will likely remain unpredictable ahead of upcoming US Nonfarm Payrolls data. Trading crowds remain fairly net-long the US currency following its tumbles against the Euro and Canadian Dollar—giving contrarian signal to buy EURUSD and sell USDCAD. Yet sentiment has since moderated somewhat and our short-term bias is admittedly less clear. Traders should likely monitor any and all reactions to upcoming NFP data; any especially sharp surprises will likely drive short-term trends in the US Dollar and other risk sentiment-sensitive currencies.
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