Manufacturing number hit a 7 year low which brought the dollar down during the NY session. The Fed’s are data dependent which means every data is important and will impact the dollar whether it’s good or bad. Although there seems to be a pullback in the dollar, it doesn’t mean it will break highs by the end of the month, especially if the Fed’s are hawkish and the ECB dovish. It’ll be a good opportunity to scout out for some EUR/USD shorts.
The markets have been consolidating ever since thanksgiving break. Yellen is speaking tomorrow, Draghi on Thursday, and we have a jobs report on Friday. I have some EUR/USD short positions I’ll hold overnight; just incase dollar decides to rally again. I’m expecting the markets to break out of consolidation tomorrow and hopefully see a lively market.