USD likely to feel upward pressure in months to come

The USD should continue gaining ground as the probability of a lift-off no later than March increases while market volatility continues to decline. The non-farm payroll report on Friday should support this. 

A confirmation of a rebound towards 180k would be enough for the USD to appreciate since the labor market is operating practically at full capacity.

"Creation of 175k jobs is expected, with the unemployment rate declining to 5.0% and wages increasing 0.3% m/m", says Barclays. 

Moreover, the non-manufacturing ISM is likely to confirm on Wednesday that the main driver of the US economy remains in fairly good shape and that the release will stay well above its long-term average. 

"These events, coupled with the growing expectation of further easing in major central banks, should continue to exert upward pressure on the USD in the months to come", added Barclays.