Overblown NFP expectations could stop USD from notching up a twelfth consecutive weekly gain – Scotiabank

The USD is mixed overall against the majors ahead of the US Nonfarm Payrolls report. Economists at Scotiabank analyze Greenack’s outlook.

Extended bull run appears vulnerable

Price action is endangering the bullish run in the DXY that has so far secured eleven, consecutive weekly gains. Double-digit runs like this are rare and it is even rarer for the run of net gains to extend much further. As things stand, the weekly pattern of price action is shaping up bearishly, forming a potential ‘shooting star’ candle pattern which might call time on the trend higher.

If there is anything that is going to stop the USD from notching up a twelfth, consecutive weekly gain, it might well be overblown job expectations. 

With a long weekend ahead in North America, trade might fizzle out pretty quickly unless the number produces a major surprise.