Strong NFP is needed to avert another dovish repricing – ING
On Wednesday, the dollar oscillated and ultimately trended higher. A strong US jobs report tomorrow is likely needed to avert another dovish re-pricing, but the lack of data today may keep the dollar mostly flat, barring any new news on the virus, economists at ING report.
USD is in need of more good data
“Given the material downside risks caused by the Omicron variant, markets will likely require the data flow to remain quite strong to avert another dovish repricing. In this sense, tomorrow's payrolls are set to be quite key, while today some more marginal focus will be on the initial jobless claims.”
“We think the dollar may find some stabilisation today ahead of tomorrow’s nonfarm payrolls, although unpredictable developments about the new variant can rapidly shift momentum in either direction.”