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Dollar traders are in for a treat with Powell’s testimonies and NFP-related reports keeping volatility alive for the Greenback.

Planning on trading dollar pairs this week?

Not until you know a bit about this week’s potential movers!

Powell’s testimonies

  • Fed Governor Powell will talk CARES Act with Treasury’s Steven Mnuchin before lawmakers in DC on Tuesday and Wednesday
  • We know from last week’s price action that hints of easier policies for longer could extend USD’s downtrend across the board
  • Watch out for hints that the Treasury or the Fed would find it harder to get additional funds in 2021

NFP-related reports

  • ISM’s manufacturing PMI (Dec 1, 3:00 pm GMT) to jump from 53.4 to 56.7?
  • ADP non-farm employment change (Dec 2, 1:15 pm GMT) seen improving from 365K to 370K in November
  • Challenger job cuts (Dec 3, 12:30 pm GMT) could print at 79K (from 80K)
  • Initial jobless claims (Dec 3, 1:30 pm GMT) expected at 774K (from last week’s 778K)
  • Non-farm payrolls (Dec 4, 1:30 pm GMT) seen at 500K in November after 638K reading in October
  • The unemployment rate could dip from 6.9% to 6.8%
  • Average hourly earnings expected to remain at 0.1% for the month

Overall dollar demand

  • COVID-19 updates (number of cases, lockdown prospects, vaccine results) will continue to factor in the demand for the safe-haven dollar
  • Themes like the Brexit negotiations and OPEC’s decision will also factor in the overall risk sentiment
  • Any significant friction in the Presidential transition in January could limit the dollar’s gains

Technical snapshot

  • The dollar has hit the Keltner Channel’s “oversold” status against the Kiwi
  • USD may soon hit “oversold” conditions against EUR on the daily time frame
USD Forex Pairs Keltner Channel from MarketMilk
USD Forex Pairs Keltner Channel from MarketMilk
  • EMAs reflect the dollar short and long-term bearish trends against most of its major counterparts
  • USD is seeing short-term demand against the pound
USD Forex Pairs EMAs from MarketMilk
USD Forex Pairs EMAs from MarketMilk
  • Like the yen, the dollar was most volatile against the comdolls and the pound in the last month
USD Forex Pairs Volatility from MarketMilk
USD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read USD’s price recap for Nov. 23 – 27!