Talking Points:
• The S&P 500's recovery extended aggressively while the Dollar scaled new multi-year highs
• Both trends in speculative appetite and Fed rate forecasting will be put to the test Friday
• NFPs is scheduled for release Friday at 13:30 GMT
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We have already opened the 2015 trading year to surprising volatility, so traders are no doubt wary over what a known market-mover like NFPs can wrought on price action. Given the Dollar's incredible run the past six months, it would seem the currency is at-risk should the data quiet calls for an imminent rate hike. That said, even a miss on this front is unlikely to materially diminish the Greenback's rate standing versus counterparts that are still leveraging open-ended stimulus like EURUSD. In turn, the same 'disappointing' scenario could actually represent a good setup for entering EURUSD. In contrast, a risk response find pairs like USDJPY and GBPJPY as well as benchmarks like the S&P 500 at critical points against a backdrop of volatility and fear. We look at the scenarios for short-term NFP volatility and how they can feed medium-term trends in today's Trading Video.
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