The post non-farm payrolls trade has been dizzying

<p>This is some tough price action to make sense of, let alone make money with.</p><p>It's been back-and-forth nonstop today since non-farm payrolls. The dollar rallied initially, which is what you would expect on falling unemployment. But it quickly gave it all back, then rallied again. Wash, rinse, repeat.</p><p>Flows have been a big part of market dynamics and the market has been aggressive in pricing in Fed cuts without a lot of data to back that up. Layer on that is the blowup of the extremely-crowded yen trade.</p><p>Now we're getting some retracement in bonds but stocks are holding up and the dollar isn't sure which way to go. There's a school of thought that inflation can (and will) come back to the Fed's target even with a hot economy, something that would defy economic history but could be a pandemic-era one-off.</p>

This article was written by Adam Button at www.forexlive.com.