NFP: The moderation in headline job gains coupled with softer AHE should continue to blunt USD strength – TDS
|Nonfarm Payrolls surprised expectations to the downside in October. This brought the USD lower from its high ground. Economists at TD Securities analyze Greenback’s outlook.
A topping out of 10Y yields and US rates vol will help revive the high-quality carry currencies
Both the headline jobs number and wage data came on the softer side, reinforcing the disinflation narrative. This sets the wheels in motion for peak rates, weak USD, lower rates vol and a revival of the carry theme.
Continued moderation in front-end yields should support the low yielders in G10 and Asia whereas a topping out of 10Y yields and US rates vol will help revive the high-quality carry currencies. We continue to like BRL and MXN.
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.