"This is an environment where you're going to see a lot of volatility based on small details." The dollar index, which measures the greenback against six counterparts including the yen and euro, rose 0.4% to 105.56, taking its weekly gain to more than 2% and putting it on track for its best one-week performance since late September. According to a Reuters survey of economists, the non-farm payrolls report is expected to show on Friday that 200,000 jobs were created in December, easing from November's 263,000 pace but still about double the level the Fed considers sustainable.
U.S. E-mini stock futures gained 0.8%, after a 1.16% overnight slide for the S&P 500 that followed private payrolls data, which showed a bigger than expected rise in employment and a drop in jobless claims. While many investors are cautiously positioned for sky-high U.S. inflation to subside following signs of a slowdown in recent months, they also expect monthly price and wage numbers to drive market volatility.