The greenback has pulled back on Thursday after the initial rally across the board. The EURUSD pair regained the 1.15 figure, while the cable jumped above 1.30 due to dollar correction coupled with signs of stabilization in Italy and some positive Brexit developments.
However the last trading day of the week may bring some adjustments in dollar pairs after the US NFP employment report. While the consensus expectations for headline data point to around 185,000 jobs added, traders look to stronger numbers citing the pre-NFP leading indicators. In particular, ADP employment report came out above consensus at 230K against a forecast of 185K. The employment components of the PMIs also exceeded expectations.
But let’s not forget that markets pay a closer attention to wages data lately, so this indicator will be the key driver for the short-term dollar dynamics. So should the wages show a big surprise and come out above the expected 0.3% rise, the buck will resume the rally that was fuelled by the recent jump in the US Treasury yields. Otherwise, the USD will finish the week on a negative note