Dollar sitting mid-range as traders await non-farm payroll data
June 2nd - The dollar saw a turbulent session yesterday, rallying on the back of renewed speculation that further rate hikes would be forthcoming from the Fed, then falling as expectations of a more hawkish sentiment emerged on the back of weaker than expected ISM data and slowing auto sales as a result of high fuel prices. After this volatility, there’s been little to provide much real direction through the Asian session but many traders may now be tempted to sit out of the market ahead of this afternoon’s non-farm payrolls. Last month’s figure was disappointing and forecasts are for a reasonable improvement this time round but with weekly jobless claims having shown some worrying growth of late, there’s potential for another lacklustre figure to be posted. Although there does seem to be some debate right now as to where fair values lie, anything that exaggerates calls for a break in interest rates could leave the dollar under further pressure. We remain well above recent lows on all the major crosses – EUR, JPY and GBP – so there’s no doubt that another quick move lower is possible ahead of the weekend break although after yesterday’s reversion the argument for simply booking profits may not be as strong as it could have been…
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