• US dollar to remain well supported bar a plunge in NFP – MUFG

Market news

8 July 2022

US dollar to remain well supported bar a plunge in NFP – MUFG

The highlight of the day is the release of June’s Nonfarm Payrolls in the US. Economists at MUFG Bank expect the US dollar to remain well supported unless a plunge in NFP today.

Big payrolls miss required to dent dollar strength

“We would have to see a really bad NFP print to move the dial on near-term rate expectations and hence the US dollar is unlikely to be undermined by more moderate signs of slowing employment growth.”

“Fed rhetoric (Waller & Bullard) suggests there is still support for going by 75 bps this month given that the market is positioned for it. So the US dollar should remain well supported bar a plunge in NFP today.”

See – NFP Preview: Forecasts from 10 major banks, labour market loses momentum

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