eToro – Forex Trading Forum

[JacobFrost]

Dollar was sharply lower last week after a couple of dollar negative news that intensified fear for recessions in the US.
Friday's disappointing Non-Farm Payroll report should have extended dollar's weakness further, but it recovered instead!
Markets attributed that to Fed's surprised announcement of increasing size of its Term Auction Facility to improve liquidity. However, note that dollar was sitting on some important support before the recovery, in particular against the Japanese yen. The late recovery in dollar is more likely a technical rebound on profit taking, but not a reversal in the overall dollar bearish sentiments. Hence, while a number of important economic data will be released this week, the major focus will be on the how dollar reaction to the current technical levels.