Dollar Index Outlook – Ahead Of NFP
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.