US Dollar climbs to daily tops near 101.80 ahead of NFP

The greenback – tracked by the US Dollar Index – has recovered the good mood on Friday, currently hovering over the 101.70/80 band.

US Dollar attention to Payrolls

The index has managed to revert yesterday’s drop to multi-day lows in the mid-101.00s, so far reaching the vicinity of 101.80 as markets get ready for the release of December’s Non-farm Payrolls. Market consensus expects the US economy to have added nearly 180K jobs during last month, while the unemployment rate is seen at 4.7% during the same period, up from November’s 4.6%.

Further data in the US docket will see Factory Orders for the month of November and speeches by Chicago Fed C.Evans (voter, dovish) and Richmond Fed J.Lacker (2018 voter, hawkish).

After two consecutive pullbacks, the Dollar is showing some signs of life, managing to leave behind part of the weakness stemmed from the latest release of the FOMC minutes on Wednesday. Recall that the Committee emphasized the ‘considerable uncertainty’ over the implications on the economy of the probable policies under Trump’s presidency.

US Dollar relevant levels

The index is gaining 0.21% at 101.73 facing the next hurdle at 102.42 (20-day sma) ahead of 103.81 (2017 high Jan.4) followed by 107.38 (monthly high Dec.2002). On the flip side, a breakdown of 101.30 (low Jan.6) would open the door to 100.75 (low Dec.14) and then 100.65 (55-day sma).