Buck Goes Up, NFP on Tap

Buck goes up, NFP on tap! The US dollar gained pace on Friday as investors are keeping their eyes peeled for the NFP release.

After a tensed Thursday for the buck as mixed economic releases flooded the US market, early on NFP Friday, the greenback gains pace and starts adding a few pips against its major peers. The US dollar index gained 0.10%, reaching 91.69 in the first hours of the morning.

ADP analysts reported that 250,000 new jobs were added in December in the US private sector, against all odds. However, another report showed that only 188k jobs would have flooded the non-farming sector in December. So, which one is it?

Leaving the accuracy of these prognostications aside, the buck goes up on the NFP Friday, boosted by the hawkish FOMC meeting minutes, which highlighted that there was plenty of room for a gradual rate hike in 2018. Nevertheless, the pace might accelerate if inflation went higher.

Buck Goes Up

Moved up across the charts everywhere by these hawkish statements, the buck added a few pips against its main peers.

The euro and the Sterling trended steadily on the NFP Friday morning. EURUSD started the day with an open at 1.20666, while GBPUSD kicked off at 1.35512.

By comparison, the Japanese yen and the Swiss franc trended lower against a rallying buck, with the USDJPY opening at 112.800 and sluggishly adding a few pips to 113.240 (on the daily live chart). USDCHF had a daily open at 0.97447 and hovering a little bit below 0.97700 levels.

Australia released its Trade Balance in the early hours of the NFP Friday, which showed a disappointing economic deficit widening to A$628,000 in November, compared to October’s 302,000 figure, which was revised from an estimated A$105,000.

Analysts had envisaged the country’s economic deficit would widen to only A$555,000 in November. Consequently, the Aussie has moved lower against the buck ahead of the NFP, with AUDUSD opening at 0.78633.

Other buck peers also rolled with the NFP flow. NZDUSD shed a few pips to open daily at 0.71550.

Meanwhile, USDCAD gained a few pips ahead of the big release, as CAD bulls are also lying in wait for Canada’s employment change data due today, reaching a daily open of 1.24907.