US Dollar needs impressively strong NFP report to advance notably – MUFG NFP DollarIndex Banks Fed
Chair Powell’s speech means the jobs reports in the coming months will be even more important. Economists at MUFG Bank note that impressively strong Nonfarm Payrolls figures are needed to lift the US Dollar.“When Fed Chair Powell talks of avoiding ‘crashing the economy’ what the Fed really wants to engineer is a soft landing that means the scale of unemployment increase is kept to the minimum required to achieve a drop in inflation back to target.
“It would take less of a surprise we feel for the market to price in less tightening from the FOMC than more. So the bias feels skewed to a weaker Dollar today and a stronger jobs report would have to be impressively stronger to see the US Dollar advance notably.”Information on these pages contains forward-looking statements that involve risks and uncertainties.
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