Today’s market was a near textbook example of volatility throughout the course of a trading day. Most pairs showed volatile movements and the market lacked direction awaiting the Non-Farm Payroll (NFP) report and the unemployment rate number due out tomorrow at 8:30 AM EST. Many analysts expect the number to show an increase in job creation in the US which could give a boost to the US dollar. Speculators look for this boost to come from the pressure good job numbers will have on the Fed, pushing it in a more hawkish direction.
Today at 4:30 PM EST the unemployment claims number for the US was released, and it gave a slight boost to the US Dollar, which edged higher against most pairs. It is unlikely that the market will choose a more clear direction until we head towards the morning. Prior to today’s report the EUR/USD edged higher to the area of 1.4230, and then retraced back to the strong resistance of 1.4150 once the unemployment claims number was released.
As always, tomorrow morning should be pretty exciting.