8 May 2015
What will be the impact of NFP on USD? – KBC
FXStreet (Barcelona) - According to KBC Bank, an expected above 200K rebound will likely put a floor for the recent USD losses and likely pour some strength too.
Key Quotes
“We expected job growth to return above 200K, but don’t expect a spectacular positive surprise.”
“Of late, moves in interest rates and interest rate differentials were not always an evident driver for currency trading. Even so, we assume that a decent US payrolls report will give markets more confidence that the Fed can proceed with a rate hike this summer. If so, it should put a floor for the recent USD correction and might even inspire further USD gains.”
Key Quotes
“We expected job growth to return above 200K, but don’t expect a spectacular positive surprise.”
“Of late, moves in interest rates and interest rate differentials were not always an evident driver for currency trading. Even so, we assume that a decent US payrolls report will give markets more confidence that the Fed can proceed with a rate hike this summer. If so, it should put a floor for the recent USD correction and might even inspire further USD gains.”