The US dollar hasn’t moved very far in the past three weeks. In fact, since the greenback’s aggressive December rally stalled, the benchmark EURUSD has maintained a range (albeit one with a mild bearish bias) of a little more than 100 pips. Through the end of today’s US session, the dollar would complete another bullish swing within its limited range. However, this technical cue may be just one step away from a critical breakout for the meandering currency. There are a few things that can spark life back into the dollar and risk appetite in general; US non-farm payrolls (NFPs). Further leveraging the clout of this already notable market mover, we can see blatant evidence of pent up pressure across the financial markets. And, no other benchmark better defines the need for momentum and trend better the Dow Jones Industrial Average. The model traditional-investor asset class, the equity index is a straightforward barometer for risk appetite or aversion. That being said, the benchmark has maintained a 300-point spread for going on two months now. When the stock market finally breaks, expect the US dollar to the same.
