Institution: This week's non-farm payroll data is more likely to be hot
analysts at Monex Europe said in a report that if the non-farm data released on Friday is better than expected, the dollar may gain some support. "We believe that the August data will show that the labor market remains relatively stable, with a greater likelihood of data being hot." This may shift market focus back to inflation risks, as August inflation data will be released before the Fed's September meeting. If the Fed places more emphasis on inflation risks, it may not even be able to implement rate cuts throughout the year. This situation will prompt the market to raise interest rate expectations and push the dollar higher.
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