Dollar to Fall if US Nonfarm Payrolls Miss Forecasts

The dollar will fall if July’s U.S. nonfarm payrolls data miss analysts’ forecast as the figures are expected to influence the Federal Reserve’s decision on the timing of tapering asset purchases, ActivTrades says. “A disappointing number, anything below the 900,000 consensus would be penalising for the dollar, feeding into the dovish narrative recently adopted by some Fed officials, who have been highlighting weaknesses in the labour market as signs that the recovery will need to cover more ground before the tightening of policies can start,” ActivTrades analyst Ricardo Evangelista says. The payrolls report is due on Friday.

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