Investors are cautious ahead of the Nonfarm Payrolls report, which could trigger volatility around the US Dollar.
The US Dollar Index retreats further, nearing the August low at 100.62.
The US Dollar (USD) trades slightly on the back foot on Friday as markets brace for potentially the most volatile event of the week, Nonfarm Payrolls (NFP). Markets are increasingly considering the possibility that the US Federal Reserve (Fed) could opt for a big interest-rate cut compared with the beginning of the week after a streak of labor-market-related data came weaker than expected. A big miss in the Nonfarm Payrolls number will confirm this stance, while a big beat on estimates might see a spicy outcome, with the US Dollar rallying and rate cut bets being quickly unwound.
The Nonfarm Payrolls print will be the main element together with the Unemployment Rate and the monthly Average Hourly Earnings. However, the surprise might come right at the end of the trading day with Federal Reserve Governor Christopher Waller due to speak after the Nonfarm Payrolls print is published. Fed Waller is known for delivering some market-moving comments, and he might be the one to confirm if in September the Fed will go for a 25-basis-point or a 50-basis-point rate cut.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.