FXStreet reports that according to economists at MUFG Bank, given Friday’s NFP report will be the first since the FOMC, we could well see an outsized move. 

“The ‘Jobs Plentiful minus Jobs Hard to Get’ index surged in the confidence report yesterday and underlines the fact that if we see some easing of the labour supply problems then we could well see a big jobs gain in the report on Friday. After the 559K gain In May the market consensus on Bloomberg is for a 700K gain – the ‘whisper’ number is at 800k but could well be creeping higher still now.”

“A blowout report would certainly reinforce the building expectations that a September confirmation of tapering starting in Q4 would be delivered. The moves in FX spot certainly point to the continued existence of short USD speculative positions.”

“Expectations of a strong jobs report are rising now which is fuelling further USD strength which could well continue into the employment report and possibly beyond if expectations are confirmed or surpassed.”