Forex: 'Risk' Response to NFPs Critical for Dollar, S&P 500 Breakout
• NFPs is Friday's top event risk but the market's likely response is not easily read
• A pullback in VIX and other volatility measures is curbing bears' ability to mount a new trend
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The market is moving from ECB and BoE rate decisions this past session to a volatility-favorite NFPs to headline Friday's docket. We are in a critical phase of the structural development of sentiment trends - whether we return to the multi-month bullish track or see the recent turn evolve into a full-blown bearish reversal. A pullback in the VIX Index and other volatility readings has tempered the market's risks of pitching into a steeper risk decline - a missing driver for the Dollar and key for keeping the Yen crosses sinking. The US employment report has the ability to tap into this theme, but the market's sensitivity isn't as clear as it has been in the past. Will this data offer enough influence to force a necessary S&P 500 breakout or feed the USDollar's recent trendline break? We look at the market and its opportunities in today's Trading Video.
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