USD is close to re-testing weekly lows as we approach the US Nonfarm payrolls later today. US unemployment for November is expected to remain unchanged at 4.9% and the US economy is expected to have created 180k jobs through this last previous month. Follow the actual data at 1430 CET.
The US Dollar index, measuring the level of the USD against a basket of other currencies, is currently at 100.79 close to re-tesing Monday’s lows of 100.64. Throughout the month of November alone the US Dollar has seen a gain of over 3% from open to close and last week attained 13-1/2 year highs of 102.05.
The USD continues to look bullish surrounded by expectations of soon-to-be Fed tightening and increased government spending as Trump takes the podium. The USD is a buy on dips, and this makes the upcoming nonfarm payrolls data an opportunity for possible entry or profit taking depending on the direction it will take.
The euro was unable to capitalise much from the temporary USD weakness, as it faces its own test as well. Over the weekend all eyes will go to the italian referendum on Sunday, PM Renzi has pledged to leave his post if proposed constitutional reforms do not go through.
On today’s economic docket we have lined up CHF GDP, US Unemployment and NFP, CAD Unemployment.
