Dollar Index Outlook – Ahead Of NFP-20200605
Momentum thus far has been against the dollar as investors back global recovery headlines.
General markets remain positively toned with Germany continuing to debate fresh stimulus, Brent trading above $40/bl and Korea announcing a huge, third fiscal stimulus.
We have Non-farm payroll data being released at 1:30 pm BST. A worse than expected figure is likely to see a case of the FED printing more money, whilst a positive figure will back the global recovery headlines. Negative data is likely to see the DXY extending lower to the 95.00 level.
From a technical perspective, the DXY is currently testing support at 96.60, there could be the possibility for a pullback here to the 97.43 area. Current sentiment points towards a weaker dollar for now.