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US NFP numbers infuse renewed thrust into USD rally - TD Securities

FXStreet (Łódź) - The TD Securities team of analysts point out that the USD rally gained momentum following the better-than-expected US NFP release for September, resulting in the12th-consecutive week of gains for the dollar.

Key quotes

"EUR/USD has given up a little ground so far today as option-related demand around 1.25 continues to hold. And the usual data lull that follows the US NFP release may see more of a range trading bias in the next day or so as investors await new information."

"While the data calendar looks light, there are a number of events that could still help drive the markets; this morning’s Fed LMCI data has some novelty value as a new release but it may take the markets a little time to assess its impact. The release will be interesting but probably not market moving today."

"Fed minutes on Wednesday may be more impactful; markets will look for more clues on forward guidance and the Fed’s thinking on the labour market slack."

"There are central bank meetings in Australia, Japan and the UK this week while ECB President Draghi speaks on Thursday."

"We remain bullish on the outlook for the USD from an overall perspective but we remain concerned that the extended run up is (increasingly) prone to a correction.We think USD dips remain a buy, however."

"And if EUR/USD can push under 1.25 near-term, there is little to stop the drop extending back to the 1.20 area in the months ahead from a chart point of view."

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