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DailyFX Senior Currency Strategist Christopher Vecchio, CFA and Market Analyst Paul Robinson review the outlooks for USD-pairs around the October US Nonfarm Payrolls on Friday, why the past week was less about the greenback and more about other currencies, and how the economic calendar over the next week will impact FX markets.
The October US jobs report offers little if any meaningful insight into trends underlying the US labor market, just like the September US labor market update. As history shows, following a natural disaster in the US, jobs figures tend to fall sharply below trend in month one (September jobs report), rebound sharply above trend in month two (today's October jobs report), and return to trend in month three (next month's November jobs report). We will probably have to wait another month until market participants begin to look at US jobs data with a more critical eye.
As such, as explained in the webinar archive, the US Dollar's bullish posture should remain intact heading into next week, regardless of what the October US Nonfarm Payrolls report revealed. In particular, we believe that the US Dollar remains on favorable footing against the lower yielding safe haven currencies like the Japanese Yen or Swiss Franc.
Other topics covered include:
- Where do Fed rate hike expectations fall for the rest of 2017 and early-2018?
- With what bias should we approach the US Dollar through November?
- How will fiscal policy be a major factor for the US Dollar moving forward?
--- Written and produced by Paul Robinson, Market Analyst and Christopher Vecchio, CFA, Senior Currency Strategist
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