Trading Video: USDollar Staged at Three-Month Range High as Traders Await NFPs
• Top event risk Friday and a key to Fed rate forecasts is the US August employment report
• The Sterling slipped after the BoE showed a softer push for rate hikes than many had expected
• Risk trends are leaning heavily, but few benchmarks are as in precarious a position as the Dow Index
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The Dow, Dollar and Pound have all moved into positions prone to serious technical breaks; but is there enough pressure to clear the boundaries? From this past session, both an overarching theme and scheduled event risk dominated the trading landscape. Risk aversion continues to simmer with a broad drop in equities, but it was the high profile head-and-shoulders pattern for the Dow Jones Industrial Average that positioned for a possible technical tipping point. In FX, the BoE's 'Super Thursday' generated the strong volatility and volume expected, but the outcome caught more than a portion of the market off guard. Ahead, we will follow the trajectory of sentiment trends, but US employment figures for August will present a more distinct cause-and-effect for the Dollar. What is moving and where is the pressure building? We discuss that in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.