FX Today: Focus shifts to US Nonfarm Payrolls

The US Dollar (USD) posted decent gains, enough to maintain its optimism unchanged so far this year. Meanwhile, market participants remained cautious ahead of the release of the critical US labour market report at the end of the week.

Here’s what to watch on Friday, January 9:

The US Dollar Index (DXY) built on recent gains and surpassed its key 200-day SMA, flirting at the samet time with the 99.00 level, or multi-week tops. The Nonfarm Payrolls will take centre stage seconded in relevance by the flash U-Mich Consumer Sentiment print and speeches by the Fed’s Kashkari and Barkin.

EUR/USD further extended its bearish leg, this time putting its interim 55-day SMA near 1.1640 to the test. Balance of Trade and Industrial Production in Germany will wrap up the euro calendar along with Retail Sales in the broader Euroland and the speech by the ECB’s Lane.

GBP/USD remained well on the back foot, retreating for the third day in a row and revisiting the 1.3420-1.3415 band. Next on tap across the Channel will be the release of the BRC Retail Sales Monitor on January 13.

USD/JPY rose modestly, briefly surpassing the 157.00 barrier while extending its positive streak for the third day in a row. Household Spending data are due followed by the preliminary readings of the Coincident and Leading Economic indexes.

AUD/USD succumbed to the continuation of Wednesday’s selling pressure, easing to three-day lows and breaching below the 0.6700 support. Household Spending figures will be released in Oz on January 12.

Prices of the American benchmark WTI gave signs of life after two straight days of losses, clocking marked gains near the $58.00 mark per barrel as traders continued to closely follow developments around Venezuela’s oil.

Gold prices added to Wednesday’s retracement, hitting three-day troughs and challenging the $4,400 mark per troy ounce amid the firmer US Dollar, higher US Treasury yields and speculation surrounding the annual Bloomberg Commodity Index rebalancing. Silver prices sold off, deflating to three-day lows after revisiting the $74.50 region per ounce.