A weaker labor market report might put stronger downside pressure on USD – Commerzbank

The main event today will be the US employment data. Economists at Commerzbank analyze how USD could react to the Nonfarm Payrolls report.

Another positive surprise is unlikely to support USD

Another positive surprise is unlikely to support USD, as the Fed has made its view clear for now and as there will still be a number of other data publications before the December meeting, which could bring more clarity. Today’s labor market report only provides one part of information.

A weaker labor market report on the other hand might put stronger downside pressure on USD as this would underpin the US central bank’s more cautious approach.

That means that if we are going to see a reaction in USD it is probably mainly a downward move.

See – NFP Preview: Forecasts from nine major banks, employment remains fairly healthy