USD now looks to Powell, Payrolls – Danske Bank

Mathias Mogensen, Analyst at Danske Bank, assessed the relevance of the upcoming events in the US docket.

Key Quotes

“Uncertainty as to the next step in the trade war is still lingering but today’s US events could steal the limelight for a while”.

“With the Fed for once priced almost at par with the median dot for 2018, the risk is that hike expectations are scaled back somewhat in the current environment. In particular, if average hourly earnings in the job report once again surprise on the downside or if Fed chair Powell in his speech today offers clues on whether the Fed has become more alert to the global loss of momentum and US spill overs. That said, short US rates have not been a key USD driver lately”.