Talking Points:
• The US Dollar has been on the rise for two months - though risk and rates themes have proven spotty support
• August employment data can stoke Fed speculation and it may even spur risk trends
• As we assess the data, it is important to see how far pairs like EURUSD, GBPUSD and USDJPY have run
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With volatility climbing in the FX markets, attention turns to the next high-profile catalyst: August US NFPs. The employment data has a reputation for generating volatility for the dollar and broader capital markets. However, that impact needs to be taken in context. The first consideration is how much market response the report can reasonably muster. The FX and capital markets are growing more active generally. Then again, this data hasn't stoked much change in either rate speculation or broader risk trends recently. Next, is weighing the influence a 'bullish' or 'bearish' outcome could have given the strong performance of the greenback as of late. We look over the scenarios for this jobs report and its dollar influence in today's Strategy Video.
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