1 May 2015
Strong NFP should support the USD but not trigger an appreciation trend - Commerzbank
FXStreet (Córdoba) - A strong US labour market report should support the USD but not yet trigger a renewed appreciation trend, according to Thu Lan Nguyen, analyst at Commerzbank.
Key Quotes
“Next week, the market will keenly await the US employment report. Doubts about an imminent normalization of US monetary policy have increased recently amid weaker economic growth in the first quarter”.
“This has also weighed on the USD. Strong job growth in April would reduce these doubts and support the greenback. That said, one swallow does not make a summer. For the USD to resume its appreciation trend, the subsequent economic data would also have to confirm the FOMC’s expectations that the recent weak growth is due to temporary factors. Only then would the way be open for an interest rate hike”.
Key Quotes
“Next week, the market will keenly await the US employment report. Doubts about an imminent normalization of US monetary policy have increased recently amid weaker economic growth in the first quarter”.
“This has also weighed on the USD. Strong job growth in April would reduce these doubts and support the greenback. That said, one swallow does not make a summer. For the USD to resume its appreciation trend, the subsequent economic data would also have to confirm the FOMC’s expectations that the recent weak growth is due to temporary factors. Only then would the way be open for an interest rate hike”.