US Dollar steady around 94.70 ahead of US payrolls
- USD little changed on Republicans tax reform plan.
- Powell-trade yielded no reaction, as it was largely priced in.
- US October’s payrolls next on tap.
The greenback, tracked by the US Dollar Index (DXY), is parked around the 94.70/75 band at the end of the week, waiting for the publication of key figures in the US labour market.
US Dollar focused on NFP
The index is struggling to extend the rally seen in the last two weeks, although it so far manages to keep the trade in the upper end of the weekly range. The area of recent tops above the 95.00 handle still acts as a tough barrier for USD-bulls.
Additionally, the Republicans’ tax reform plan failed to surprise the buck to the upside, as further details and some absence of conviction seems to still prevail.
Furthermore, the buck stayed apathetic after President D.Trump appointed current FOMC and dovish governor Jerome Powell to succeed Chairwoman Janet Yellen at the helm of the Federal Reserve. The trade was already priced in after last week rumours citing Trump’s preference for Powell.
Later in the session, US non-farm payrolls is expected to show the economy added more than 300 K jobs during October, while the unemployment rate is seen unchanged at 4.2%. Further data releases include September’s factory orders and the key ISM non-manufacturing.
US Dollar relevant levels
As of writing the index is gaining 0.06% at 94.78 and a breakout of 95.15 (high Oct.27) would open the door to 95.90 (38.2% Fibo of the 2017 drop) and then 96.73 (200-day sma). On the downside, the immediate support aligns at 94.44 (10-day sma) seconded by 94.42 (low Nov.2) and finally 94.03 (23.6% Fibo of the 2017 drop).