US Dollar Poised for Further Gains, but Watch Nonfarm Payrolls
- Retail FX crowds continue selling into US Dollar gains, serves as contrarian buy signal
- Important to watch upcoming US Nonfarm Payrolls for potential USD volatility
- See full analysis below in individual currency sections
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View individual currency sections:
EURUSD - Euro Downtrend Remains Intact
GBPUSD - British Pound Likely to Lose Further
USDJPY - Crowds Sell Dollar versus Yen, Serves as Buy Signal
AUDUSD - Australian Dollar at Potential Turning Point
NZDUSD - New Zealand Dollar Rally Looks in Danger
GBPJPY - British Pound Forecast to Gain versus Yen
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
The US Dollar has surged across the board, and retail FX traders continue selling into gains. We view this as a contrarian signal the Greenback continues higher.
An important caveat is that an upcoming US Nonfarm Payrolls data release may produce important US Dollar volatility; last month we saw the USD reverse sharply higher as NFPs data surprised to the topside. Overall momentum should favor continued strength, but the weight of expectations is riding high ahead of the market-moving US data release.
See specific US Dollar forecasts in the sections above, and sign up for future e-mail updates via this author’s e-mail distribution list.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.