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- USD Maintains Strong Footing
- Key Focus on Job Data
- Stocks Also Trading Tentatively
The Dollar forex market has stayed strong moving into Friday trading. This comes from a week where the currency had been tested as more hope entered the market than in the previous week and months. Traders are cautious on Friday as they await the all-important NFP numbers for September in the US. These can point the direction going forward. On Wall Street, the same is the case. Markets remain quietly traded as most keep a view on how the numbers will look first.
Dollar Not Providing Any Room to RIvals
The US Dollar has been tested earlier in the week when it gave up some ground on a more positive move. This was particularly the case for the EUR/USD which bounced from historic lows recently, to be black close to parity with the US Dollar this week. This remains the case though the Dollar is showcasing strength and resilience to keep the common European currency below $1.00 still. The news of today may well see a swing in either direction.
The Pound also lost further ground on Thursday despite lifting itself from recent record lows following a new government strategy in the UK. This approach was somewhat tempered early in the week and led to Sterling being able to reclaim some strength. On Thursday though, post-Brexit negotiations over the UK border restarted. This has been a challenging point for the country and the EU, not helping the Pound in the process.
Employment Key Market Driver in the US
All focus today from forex brokers and most of those around the market is on the NFP jobs report for September in the US. This could provide the spark which sends the market in either direction though the expectations have already been well set by analysts who are expecting the report to show around 275,000 increased non-farm payrolls for the month.
At the same time, unemployment is expected to stay at around 3.7%. Any deviation in the figures as always could prompt market movement in a period when everything and everyone in forex trading and other markets is hypersensitive. Communication from the Federal Reserve which has been continually hawkish, will also be in focus as the market looks for any cracks that could lead to a more widespread problem.
Caution in Stocks Remains
Stocks are continuing to trade slowly on Friday morning with the European session showing losses as the market waits on data from the US. The early trading on such days is always known to be slow and those trading the major indices in the US will be hoping for a positive end to the week.
So far this week, all of the major averages are set to finish considerably higher than where they started. This is despite losing ground in the Thursday session. As long as this does not leak into Friday, it will be a good week for all three.
Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.