USD Trading Outlook (03-08-2012)

U.S. Dollar Trading (USD) the market was full of positive expectations going into the ECB press conference and the USD was on the back foot as the EUR/USD shorts were squeezed to day highs scared they would be caught on the wrong side of the market. ECB President Draghi was very disappointing though and the early rally was reversed sharply to new week lows and could potentially test 1.2000 in coming days. Looking ahead, July NonFarm Payrolls forecast 100k vs. 80k. July Unemployment Rate forecast unchanged at 8.2%. July Services ISM forecast at 52 vs. 52.1 previously.

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