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If you haven’t gotten enough of this week’s top-tier reports and announcements then you gotta look at the U.S. non-farm payrolls release!

The U.S. NFP, unemployment rate, and average hourly earnings numbers will be printed today at 1:30 pm GMT.

Markets expect Uncle Sam to add a net of 193K jobs in January. This is slower than December’s 223K increase, and may be enough to push the unemployment rate higher from 3.5% to 3.6%.

U.S. Dollar Index (DXY): 4-Hour

U.S. Dollar Index (DXY) 4-Hour Forex Chart

U.S. Dollar Index (DXY) 4-Hour Forex Chart by TradingView

In his presser earlier this week, Fed Chairman Powell shared that it’s “a good thing the disinflation we have seen so far has not come at the expense of a weaker labor market.

If today’s numbers reflect a stronger-than-expected labor market, then the Fed will have to worry about persistently high or even higher inflation.

The U.S. Dollar Index (DXY), which hit multi-month lows below 110.00 earlier this week, could extend its mid-week upswing.

DXY may retest its 102.60 range resistance seen on the 4-hour chart before Stochastic hits overbought territory and the dollar sees sustained selling pressure.

But if today’s reports point to only a slight weakening in the labor market, then the Fed will have fewer reasons to go back to its aggressively hawkish plans.

DXY could get rejected at the mid-range levels near the 100 SMA and bounce lower from its current prices near the 61.8% Fiboancci retracement.

Not sure which USD pair you should trade today? Take a look at USD’s performance against its major counterparts to see if you can take advantage of existing trends!

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