The economists of MUFG Bank they expect the strong Nonfarm Payrolls report on Friday to provide further support for the dollar.
The focus will be on the health of the US labor market and not the US debt ceiling.
“In the coming days, the markets’ attention will be focused on the passage of the bill in Congress. While there is genuine discomfort about the agreement between Democrats and Republicans that could make it a close decision, we expect the agreement approved to suspend the debt ceiling in time. If the agreement is approved before date X, the US economy will avoid a larger negative shock.”
“Assuming the deal is not shockingly rejected by US politicians, markets’ attention should once again turn to the health of the US labor market over the coming week, including the release of the NFP report on Friday. The US interest rate market The US has moved towards a higher probability of another 25 basis point hike by the Fed at next month’s FOMC meeting, which is now seen as more likely than not Another good jobs report this week would further reinforce these expectations and would encourage a stronger dollar in the near term.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
