USD approaches resistance ahead of NFP

Frank Walbaum

Important news this week

Fri, 02nd, 14:30 CET US Nonfarm Payrolls.

USD approaches resistance ahead of NFP

The USD remains strong and is approaching a key resistance area. The NFP report tomorrow will be the main catalyst, with the market watching closely for a surprise in either direction.
A stronger-than-expected reading could push the USD significantly higher and potentially break the 101.50 resistance level. A weaker reading could cause the USD to lose momentum and move back below resistance, although fresh USD buyers could step in at lower levels. Equities are under pressure, with the S&P 500 starting to correct, the Nasdaq moving sideways and the Dow Jones continuing lower.

Market talk

The NFP report could determine the next major direction for the USD. The reaction will depend not only on the headline number but also on how the data changes expectations around US monetary policy. A strong labour market could reinforce demand for the dollar, while a weaker report could reduce the current momentum.
Crypto remains sideways as the new month begins. With markets waiting for fresh economic and central-bank signals, a period of consolidation could continue before the next major catalyst provides a clearer direction.

Tendencies in the markets

Equities weak, USD strong, crypto positive, oil sideways, metals weak, JPY weak.

Author

Frank Walbaum

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