"Attention will turn first to Tuesday's ISM Manufacturing PMI for December, which is expected to edge higher but remain firmly in contraction territory. On Wednesday, focus shifts to the ISM Services PMI, where a modest decline of around 0.4 points to 52.2 is anticipated, alongside the JOLTS report, with job openings forecast to rise slightly to 7.73 million. The week culminates with the nonfarm payrolls report, where job growth is expected to slow to around 55,000 from 64,000 previously."
"Any evidence of weakening labour market conditions or fading economic momentum would likely reinforce expectations of a more dovish Federal Reserve stance in 2026, weighing on both the dollar and yields. Conversely, resilience in employment or economic activity could temper easing expectations and provide renewed support. Additionally, the uncertainty over the future leadership of the Federal Reserve could remain a source of risk."
The US dollar was broadly flat while Treasury yields were mixed across the curve. Markets are cautious ahead of a packed US macro calendar next week that could influence dollar and interest-rate expectations into 2026. ISM Manufacturing for December is expected to edge higher but remain in contraction, while ISM Services is forecast to decline about 0.4 points to 52.2. JOLTS job openings are seen slightly higher at 7.73 million. Nonfarm payrolls are expected to slow to around 55,000. Weakening labor-market signals would bolster a more dovish Fed outlook; resilient data could temper easing expectations. Uncertainty over Fed leadership and differing rate-cut bets add further risk.
Read at London Business News | Londonlovesbusiness.com
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