Dollar’s path to sustained gains gets steeper, says MUFG
The US dollar faces a higher hurdle for sustained appreciation as weaker jobs data failed to spark a strong reaction, with markets focused on upcoming CPI and NFP releases before the September FOMC meeting, according to MUFG.
Derek Halpenny of MUFG notes that the weaker-than-expected US jobs report did not trigger a sharp move in the dollar or interest rates. Instead, markets are looking ahead to key data points.
- Upcoming Consumer Price Index (CPI) releases
- Another Nonfarm Payrolls (NFP) report
- These will inform the Federal Reserve’s September rate decision
The lack of a strong reaction suggests investors are waiting for clearer signals on inflation and labor market strength before committing to a directional dollar trade. The bar for sustained dollar gains remains elevated amid this uncertainty.
Source: FXStreet Forex News