Some USD strength returned after the Non-Farm Payrolls on Friday. The number was better than expected with 255k jobs being added against a forecast of 180k. This caused the dollar to strengthen against most FX pairs and some volatility to return to the Forex markets.
Dean's Daily FX Update – 08 August 2016
The EURUSD dropped some 100 pips after the number but seems to be recovering a bit of poise around the previous 61.8 Fib level and some previous support at around 1.1050. Dean looking for a possible bounce and perhaps the gap to close a bit from where the market was trading pre-announcement. Some divergence in the market evident.
The AUDUSD is also showing signs of divergence and topping out at the current levels.
In the NZDUSD, the shorts have probably had the moves as was expected last week and may have run its course for the time being.
In most pairs, Dean is looking to be long the dollar but in the USDCAD he is looking at the possibility of being long CAD … short the forex pair.
The USDJPY seems to have found some support above the 100 level and Dean is also looking at the USDZAR to stage a bit of a recovery after a prolonged period of Rand strength.
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