Economists at ING analyze USD outlook ahead of Nonfarm Payrolls figures.
A return above 104.00 in DXY in the coming days looks likely
Treasuries are hitting key levels on big US data surprises, but the Dollar is not finding real support.
The Dollar may be mirroring some lingering reluctance to align with the dot plot’s two hikes, but market conditions point to a stronger greenback in the near term, barring a substantial downside surprise in payrolls.
The path for a more supported Dollar in the near term appears to be the most obvious one, and a return above 104.00 in DXY in the coming days looks likely.
See – Nonfarm Payrolls Preview: Banks see labour market still quite strong
Source: https://www.fxstreet.com/news/market-conditions-point-to-stronger-usd-in-the-near-term-barring-a-substantial-downside-surprise-in-nfp-ing-202307070723