- Analytics
- News and Tools
- Market News
- Some risk of USD ending up lower after NFP, absent a significant topside miss – Scotiabank
Some risk of USD ending up lower after NFP, absent a significant topside miss – Scotiabank
USD struggles to hold post-ADP gains ahead of NFP. Economists at Scotiabank analyze the greenback’s outlook.
USD’s reaction to better-than-consensus data will be limited
The strong ADP data lifted market expectations an upside surprise to the data which may mean the USD’s reaction to better-than-consensus data will be limited. And there is a risk that the ADP data overstate the strength of the labour market relative to the official data significantly, perhaps due to seasonal effects (ADP gains reflected a surge in hospitality/services).
The USD is taking a cautious approach to the data. After gaining on the ADP report on Thursday, the USD slipped broadly and closed lower on the day – a bearish signal both in technical terms and its inability to profit from clearly positive data.
There does appear to be some risk of the USD ending up lower after the US jobs data, absent a significant topside miss.
DXY weakness below 102.75 support would be a clearly bearish cue for markets.
See – Nonfarm Payrolls Preview: Banks see labour market still quite strong
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
