Keep a close eye on the London fix
The US dollar is on fire after the non-farm payrolls report. With the ECB signalling that it's 'all in' on QE yesterday and technical support in EUR/USD collapsing, the outlook for the US dollar is bright.
But moves don't happen all at once, they take time. The theme on non-farm Friday is often that the moves come quick and then some profit-taking and consolidation hits. When does it happen. The first time to watch is the London fix, which is at the top of the hour. Baring an ebb in momentum then, watch closely as US traders begin to head for lunch.
From time to time the US dollar will continue to rally but there were some caveats in the report so I expect to see some profit taking on USD longs.
