David Greenlaw, MS Economist, had an interview with BBG radio the day before and spoke about his forecast for the next payrolls number. He is expecting a weather related rebound of +100k, a census impact of +100k and an ex-weather, ex-census rise of +100k (total headline payroll increase of +300k or more).

The front end of US Yield Curve is expected to shift higher if unemployment numbers comes in-line with NFP.  It is possible to see a further USD strength but market may not let people taking advantage of an easy trade and may bring some extra volatility in coming days as Move Index picking up from the oversold area.

For now, I think Dollar Index (DXY) seems to be capped at the moment and looking for a retrace down to  79.65-79.75 area with momentum turning into bearish at the moment. We have 55 weekly SMAVG and 23.8% fibonacci retrace of 74.17 to 81.34 rally.

Just to bear in mind.