Once again, all eyes are on the US labour market report. Even a low number of new positions is unlikely to weigh on the US dollar, economists at Commerzbank report.

The US labour market should continue to hum

“Several hundred thousand jobs are likely to have been created in the US again in August. So there is not likely to be any evidence on the labour market of the economy slowing. And even if the data should be disappointingly low, it is questionable whether that will cause the Fed to deviate from its current course.”

“We would have to see clearer signs of an economic downturn in the US with the addition of more cautious comments on the part of the Fed to end the USD rally. As this is unlikely to be the case for now, as the labour market report will probably confirm today in our view, USD is likely to remain in demand.”

See – NFP Preview: Forecasts from eight major banks, employment growth still strong