The Dollar has been weak, according to Chris Turner of ING, and the FX options skew indicates that there is a high demand for Dollar puts across all tenors. He identifies December retail sales, ADP jobs, and NFIB sentiment as important factors in the impending US statistics. Based on auction results and labor market reports, Turner anticipates that DXY will trade between 96.50 and 97.50 in the upcoming days.
DXY was seen with a determined short range.
"Sentiment is low and the dollar had a rough day yesterday. It is evident that the dollar puts skew in the Forex options markets is still highly sought after over the short, medium, and long term tenors.
In the future, the NFIB small business optimism index, the weekly ADP jobs data, and the December retail sales data will all be released today. The retail sales control group can sustain the belief that the US consumer is still alive and well and is anticipated to expand at a rather healthy 0.4% monthly rate.
"DXY will likely follow labor market updates and may trade in the middle of a new 96.50-97.50 range for the next three days."
DXY was seen with a determined short range.
"Sentiment is low and the dollar had a rough day yesterday. It is evident that the dollar puts skew in the Forex options markets is still highly sought after over the short, medium, and long term tenors.
In the future, the NFIB small business optimism index, the weekly ADP jobs data, and the December retail sales data will all be released today. The retail sales control group can sustain the belief that the US consumer is still alive and well and is anticipated to expand at a rather healthy 0.4% monthly rate.
"DXY will likely follow labor market updates and may trade in the middle of a new 96.50-97.50 range for the next three days."
