Dollar Pares Drop, Risk Appetite Subdued Ahead of Jobs Data
- NFP is potential fresh driver as Trump trade falters
- Much maligned ADP/NFP correlation has gotten better recently
Alden: U.S. Dollar Could Be Trump's Biggest Problem
The dollar’s fixation with Treasury yields remained intact as it pared losses ahead of January jobs data to be released Friday, with the market looking for fresh trading cues after the “Trump reflation” trade appears to have either run out of steam or run its course.
Traders are seeking a decisive catalyst for the next round of positioning as dollar sentiment eroded this week following remarks from President Trump and an aide that the dollar was overvalued. With Treasury Secretary-nominee Mnuchin not yet confirmed, traders and investors are unsure whether the administration is seeking to weaken the dollar or whether the recent remarks represent rookie missteps in the absence of a central spokesman for FX policy.