Forex: Dollar’s Restrained Reaction to NFPs Shouldn’t Pacify Traders to High Volatility Risk Ahead

While you can point out a very distinct reaction from the FX and other capital markets to Friday's non-farm payrolls (NFP) release; the net impact was far below its potential. Most market participants have become somewhat jaded by the employment statistics. Back in 2008 and 2009, consistent and large declines month after month left the market unsure of its long-term outlook for the world's largest economy.