NFP: USD Expectations Tonight

<p>&nbsp;Dollar Keeps Weak, Or Is It Just Temporary?</p><p><br /></p><p>Ahead of the key NFP data due on Friday, the US dollar has been on the decline. This caused other major currencies such as GBP, EUR, and AUD to rise.</p><p><br /></p><p>However, we see that this decline may only be temporary. A drop in the value of the dollar equates to a drop in Treasury yields, thereby reducing demand for the currency.</p><p><br /></p><p>The market is now seen to be waiting for NFP data and other labor market data to be released today.</p><p><br /></p><p>If these numbers bring another positive surprise, it is likely that both the US dollar and the 10-year treasury bond will test their recent highs.</p><p><br /></p><p>September Employment Data Indicators</p><p><br /></p><p><br /></p><p>Economists expect that US employers will report the addition of about 170,000 workers in September, down from the 187,000 recorded in the previous month.</p><p><br /></p><p>The forecast hints at a possible slowdown in US economic growth, which could lead to lower bond yields and possibly limit further gains for the US dollar.</p><p><br /></p><p>Complete data is scheduled to be announced today.</p><p><br /></p><p>Dollar Will Dominate Until The End Of The Year Before FED Dynamics Change In 2024</p><p><br /></p><p>The United States (US) dollar is expected to show a strong performance against the majority of other major currencies and is poised to continue rising towards the end of the year. Analysts predict this performance will be driven by the better performance of the United States economy.</p><p><br /></p><p>However, in 2024, central banks, led by the Federal Reserve, are expected to move towards cutting interest rates. This expected adjustment could signal the start of a significant dollar sell-off.</p>