Strong NFP report to keep the Dollar bid – ING
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The US Dollar Index (DXY) is trading in negative territory near 112.50 after having registered gains for six straight days. However, today’s US Nonfarm Payrolls (NFP) may come in above 200K, adding fuel to the USD rally, economists at ING report.
“There’s a growing perceived chance that the Fed will be the last major central bank to throw in the towel and arrest its tightening cycle, and we think this notion can provide quite sustainable support to the Dollar into the new year.”
“The focus will shift back to data as US October payrolls are released. We see room for a slightly above-consensus headline read (220K vs a conservative 195K), which should overshadow the widely expected 0.1% increase in the unemployment rate and marginal slowdown in wage growth.”
“We expect today’s release to leave markets still searching for a higher Fed terminal rate, ultimately keeping the Dollar bid.”
“A decisive break above 113.00 in DXY appears on the cards: if not today, probably in the coming days.”
See – NFP Preview: Forecasts from 10 major banks, further significant job growth
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