USD to struggle to post further gains unless very clear NFP surprise – Commerzbank

In the view of economists at Commerzbank, it seems difficult for the US Dollar to enjoy further gains unless the October jobs report surprises significantly to the upside.

Now it depends even more on the data

“The Fed has made it clear that a reduction in the pace of interest rate hikes is possible, but only if the data allow it. Against this backdrop, today’s labor market report is likely to be of greater interest.”

“We expect another very solid job creation of around 220K. However, after the USD was able to make significant gains in the last few days, it should gradually become difficult to post further gains. The labor market report would therefore probably have to be a very clear positive surprise to push the USD even higher.”

See – NFP Preview: Forecasts from 10 major banks, further significant job growth