Forex: How Will NFPs Impact the Dollar, EURUSD and S&P 500?
• Top event risk for the dollar and broader markets is the 13:30 GMT release of the US labor data
• Considering the Fed makes policy decisions on the jobless rate, it carries more sway that NFPs
• There is a scale of influence for the jobs report depending on how it leverages Fed Taper interest
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The US dollar is at considerable risk of breakout given the technical picture and the building fundamental pressure of the Fed's Taper shift. Can Friday's payrolls report offer the spark? Many traders - myself included - were surprise when equities rose and the greenback merely shrugged when the US central bank announced the long-awaited and much-feared first Taper on December 18. This represents a serious change in both the structure of relative yield forecasts as well as the assumption of risk, but market conditions were not conducive to forging the price response that would match the headline. The potential and threat of reconciliation continue to grow as we wait for the trigger that will stoke the change. We discuss this important fundamental spark and bigger picture in today's Trading Video.
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