06 October 2017 at 13:29 GMT
- Immediate USD outlook uncertain after tepid NFP
- After today's reaction, USD bulls shouldn't be wildly confident
- Jobs report points to higher odds of a December Fed rate hike
By John J Hardy
Please see today's FX Board PDF attached to this post for the latest Notes of Interest, Trend and Trend Heat readings. We'll do a chart round-up early next week.
The key point as we look ahead to next week is how the USD closes today and shapes up early next week after attempts through key resistance levels yesterday and today. As of this writing, USD bulls shouldn't be wildly confident as the reaction has been rather tepid today to a September US jobs report that looks quite positive and points to higher odds of a December Fed rate hike. This may be due to a longer-term concerns like the odds of tax reform or who will head the Fed (nomination announcement due in coming few weeks).
– Edited by Clare MacCarthy
John J Hardy is head of FX strategy at Saxo Bank