Ella 
The U.S. dollar index finally regained some balance on Friday, rebounding from two consecutive sessions of losses to reclaim the 106.50 area and will look to turn to another test around 107.00.
The dollar index’s recent knee-jerk has coincided with an equally pronounced pullback in U.S. bond yields of all maturities, as speculation that the Federal Reserve will tighten monetary policy further before the end of the year appears to have lost traction recently.
Meanwhile, investors will be closely watching the release of U.S. labor market reports, with U.S. nonfarm payrolls expected to reach 170,000 in September and the unemployment rate expected to fall to 3.7%.
In addition to the US employment report, there are also data on changes in consumer credit and a speech by Fed official Waller (permanent voter, hawk).
The dollar attempts to rebound after testing key areas around 106.50, while US September non-farm payrolls data will be in focus later in the US session.
At the same time, the strength of the U.S. economy continues to provide support for the dollar, and the Federal Reserve’s renewed stance of “maintaining tightening policy for the longer term” appears to also provide support for the dollar.
