Fundamental Forecast for Dollar:Bullish
- An NFP beat and 7-year low jobless rate doesn’t carry as much weight as the six-year high in wage growth
- The market has quickly backtracked on its skepticism over a Fed hike, but risk trends will be the market’s keystone
- See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot
Eight months of congestion have been brought to a dramatic end this past week as the US Dollar mounted an impressive rally in the aftermath of the October labor report. For the trader waiting patiently for progress, this may offer enough evidence to reestablish bullish positions waylaid earlier in the year when the record-breaking 10-month climb stalled. Those leaning on fundamentals can make the argument that a renewed run is warranted given the widening monetary policy gap between the Fed and its peers. However, traders should be mindful of a few inevitable contingencies: the rise of risk aversion and the inevitable limit of a disparate policy bearing.