Forex Strategy Video: Have NFPs Saved the S&P 500, Damned the Dollar?
• A sizable miss for the January NFPs has generated speculation that the Fed may pause its Taper
• Yet, the data was not severe and Fed officials have voiced an enduring Taper plan
• Volatility is the crux of recent volatility, and that is where we should look going forward
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Following a sharp miss by the January NFPs release, the S&P 500 advanced and the US Dollar tumbled as stories of a deferred Taper spread. Yet, has this data turned the tide on risk trends and the greenback's advantage? The data itself may have missed on the favored headline reading (payrolls), but the other benchmarks - favored for their use in setting policy - held a trend of 'improvement'. Furthermore, distant rate expectations and Fed speeches curb the likelihood of an imminent stall in the deflating effort. Yet, where then do we look for what has driven the market recently and what is likely to carry us moving forward? That is the topic of the weekend Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.