DXY could drop to the 105.50/105.55 area as long as US NFP is not too strong – ING
|EMFX surfs in a sea of green. Today's US jobs data will be key in determining whether this week's risk-positive trend has further room to run, economists at ING report.
Dollar to hand back a little further of its gains assuming no upside NFP surprises
It seems investors are starting to think that the Fed is done with rate hikes and are now starting to reduce underweight positions in risk assets, including emerging market currencies. This is Dollar negative.
Today's US jobs data will be a key determinant of whether this week's new trend has legs or will be quashed by strong hiring or wage numbers.
Assuming no upside surprises today, we favour the Dollar handing back a little further of its gains, especially against the high yielders (e.g., Mexico and Hungary) given the renewed interest in the carry trade.
DXY could drop to the 105.50/105.55 area today as long as the US jobs data is not too strong.
See – NFP Preview: Forecasts from nine major banks, employment remains fairly healthy
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.