The increase in employment in September is not too far from the consensus. In the view of economists at TD Securities, NFPs should be dollar neutral at this point.
USD/JPY above 145 risks yen intervention
“We don’t think today’s report is going to sway the dollar much one way or the other. At the very least, markets will probably have to wait until the next CPI report to claim more direction.”
“We continue to see dollar resilience towards the end of the year. The currency we see as most vulnerable to the USD wrecking ball is the CAD, given its dismal prospects for household debt service.”
“We are wary that a move above 145 in USD/JPY will force FX market intervention, which could be more likely given the upcoming CPI (especially if it is stronger). This could introduce a temporary drag on the USD.Nevertheless, the dollar remains best in class, and we look to accumulate on dips.”
Source: Fx Street
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