Dollar keeps a touch firmer to start the session

Technical Analysis

Dollar stands its ground to start European morning trade

The non-farm payrolls “miss” triggered some dollar selling on Friday but I would argue it is mostly because of higher expectations set as a result of the market being somewhat misled once again by the ADP report earlier on last week.

There weren’t any major indications of labour market weakness per se and that is enough to keep the market guessing until we get to the Fed. After all, it is yet another pandemic-distorted release so make you will with that sort of data interpretations.

As such, the dollar weakness on Friday is likely more of a kneejerk reaction than any major trend unfolding and that is exemplified by price action over the past few weeks.

Cable is the softest pair to start the day but besides the continued rejection closer to 1.4200, price action has been contained between that and 1.4100 mostly:

This isn’t quite a trending market – at least in the dollar – so that sentiment also applies to other dollar pairs with EUR/USD keeping a touch lower at 1.2150 and AUD/USD at 0.7735 to get things started on the new week.
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