USD – The dollar eased against a basket of currencies on Monday, pulling back from the 1-year high hit last week, as traders looked to US jobs data at the end of the week for clues to the Federal Reserve’s next move.
Fx analysts at Jefferies note that “Nonfarm payrolls will be the big focus for markets this week… Will the Fed read negatively to a 300k print? Likely not, with the momentum on taper already really high the Fed will have a hard time making an about face after a small miss on what has been a very volatile series. If we were to see something more extreme like a negative NFP print for example, then we could have a different story and the Fed may be forced to at least pause.”
Fx analysts at Jefferies note that “Nonfarm payrolls will be the big focus for markets this week… Will the Fed read negatively to a 300k print? Likely not, with the momentum on taper already really high the Fed will have a hard time making an about face after a small miss on what has been a very volatile series. If we were to see something more extreme like a negative NFP print for example, then we could have a different story and the Fed may be forced to at least pause.”