"The US dollar extended its advance on Friday, climbing to fresh multi-week highs. Markets will likely react with more volatility to the upcoming data. The December nonfarm payrolls report could be pivotal for shaping expectations around monetary policy in 2026. Forecasts point to a job growth of around 60,000, slightly below the previous 64,000 reading. Any material deviation from expectations could inject volatility into both forex and bond markets."
"US treasury yields were broadly climbing ahead of the data, with the 10-year yield near 4.19%, supporting the dollar. Weaker-than-expected payrolls print would likely reinforce expectations for a more dovish Fed path next year, weighing on both the dollar and yields, while a stronger reading could challenge rate-cut expectations and provide further support to both. Data released on Thursday painted a mixed picture of the US economy."
The US dollar extended its advance to multi-week highs as markets await the December nonfarm payrolls. Forecasts point to payroll growth around 60,000, slightly below the prior 64,000, and notable deviations could trigger volatility in forex and bond markets. US Treasury yields climbed ahead of the release, with the 10-year near 4.19%, providing support to the dollar. A weaker payrolls outcome would likely reinforce expectations for a more dovish Fed path and depress both the dollar and yields, while a stronger reading could challenge rate-cut expectations and bolster them. Recent US data were mixed, with initial jobless claims at 208,000, rising continuing claims, and a narrowed trade deficit of USD 29.4 billion in October. A Supreme Court ruling on IEEPA tariff authority could add further market uncertainty.
Read at London Business News | Londonlovesbusiness.com
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