Dollar Consolidates Gains Ahead of Critical US Jobs Data
The US Dollar has been consolidating its weekly gains ahead of the critical Nonfarm Payrolls (NFP) data release on Friday. Investors are gearing up for the employment report, which will feature NFP, wage inflation, and Unemployment Rate figures. The European economic calendar is also offering Harmonized Index of Consumer Prices (HICP) data for September.
The US Dollar has been strong against its major rivals this week, with a 1.07% gain against the Euro. However, it's in negative territory below 102.00 ahead of the NFP release. Analysts expect NFP to rise by 90K in September following August's impressive 162K increase.
TD Securities anticipates that September US payrolls will show a marked loss of momentum, with 'September NFP likely moderated to 50k, with the UE rate rising to 4.2%.' However, they stress that it would 'look through dovishness in the report due to seasonal factors and rising participation,' suggesting that a seemingly benign wage and employment print may overstate any underlying cooling in labor-market conditions.