Analysts at Danske Bank point out that USD came under pressure yesterday from the continued decline in Treasury yields and as the December Fed hike is increasingly being questioned as being a done deal by markets (now priced in with just over a two-thirds probability).
Key Quotes
“Today’s US job report could be instrumental in deciding whether the dollar will remain under pressure heading into the coming weeks’ central bank meetings.”
“Looking to the ECB next Thursday, we believe that the FX markets will take their cue from the ECB’s stance on the cyclical position of the eurozone given little news on rate guidance is likely. Despite recent loss of growth momentum, if Mario Draghi strikes an upbeat tone due to recent constructive wage developments, it could make room for some temporary EUR support.”
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