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Kooijman is the CEO and Asset Manager of DHF Capital S.A
(MENAFN- Your Mind Media ) The US dollar stabilised to some extent on Friday following a decline the previous day. However, the currency remains at risk as yields retreated this week. Federal Reserve Governor Christopher Waller said that he would be inclined to support keeping rates unchanged this month if disinflation persists. This prompted a reduction in interest rate hike expectations, with roughly even odds of an increase of hold in September.
This repricing has placed downward pressure on Treasury yields. Nevertheless, they remain at elevated levels, as an interest rate hike is still expected before the end of the year, which could limit any further decline. Pressure could also build from abroad, as more hawkish expectations surrounding the Bank of Japan and the European Central Bank could narrow rate differentials and weigh on the dollar against both currencies.
Attention now turns to the August non-farm payrolls report, forecast at 56,000 jobs with unemployment seen holding at 4.1%. A firmer reading could revive tightening bets, lift yields and support the currency, while any signs of a cooling labour market could place additional selling pressure. Nevertheless, the reaction could still prove muted, after Waller pointed to next week's inflation data as the decisive input.
Appreciate your cooperation in publishing theanalysis.
For any inquiry or more information please do not hesitate to contact us.
This repricing has placed downward pressure on Treasury yields. Nevertheless, they remain at elevated levels, as an interest rate hike is still expected before the end of the year, which could limit any further decline. Pressure could also build from abroad, as more hawkish expectations surrounding the Bank of Japan and the European Central Bank could narrow rate differentials and weigh on the dollar against both currencies.
Attention now turns to the August non-farm payrolls report, forecast at 56,000 jobs with unemployment seen holding at 4.1%. A firmer reading could revive tightening bets, lift yields and support the currency, while any signs of a cooling labour market could place additional selling pressure. Nevertheless, the reaction could still prove muted, after Waller pointed to next week's inflation data as the decisive input.
Appreciate your cooperation in publishing theanalysis.
For any inquiry or more information please do not hesitate to contact us.
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