Last week and so far this week the dollar has recovered almost all of the losses made in early September.

USD-JPY in particular at over 113.50 is now close to ten-month highs.

For an indication of whether the dollar might remain strong or pull back from recent highs, traders are waiting for Friday’s release of non-farm payrolls for September.

As of now, the prediction is about 185,000.

The dollar received a boost from last month’s NFP release which came in at 201,000, beating expectations by 10,000.

Dollar bulls also noted that unemployment at 3.9% last month was close to an 18-year low.

These were among the main factors in the dollar’s recent strengthening against other majors at the end of last month.

With strong employment data from the USA and an overall good picture for the American economy, it’s quite possible that King Dollar will be around for October as well if Friday’s result meets the expectation.

On the other hand, the fluctuating numbers of the first half of 2018 could make a comeback.

Either way, currency traders are looking forward to volatility around the NFP release on Friday.

• The NFP measures the change in numbers of employees in the USA.
• Seen as a key economic indicator, new jobs help to determine consumer spending.
• Last month’s figure of 201,000 was significantly higher than expected.
• With about 185,000 predicted, it could be onward and upward for the dollar.