What’s next for the Dollar

This data will also be the next major driver of the dollar, at least until we get the June CPI report. The US dollar index is at a 14-month high, and the US dollar is the best performing currency in the past year. In the past month, the USD index has risen by 2.5%. The break above 100.50 2 weeks ago was an extremely bullish development, and is supportive of further gains.

However, the forex market can be contrarian around payrolls reports, so we could see some buying the rumour, before selling the fact later on Thursday.