Monex Europe: Nonfarm Payroll Data May Be Hotter Than Expected, Dollar Likely to Gain Support

Monex Europe analysts noted in a report that the U.S. nonfarm payroll data set to be released this Friday might show strong performance, indicating that the labor market remains robust, with a higher likelihood of hotter-than-expected data. If the data exceeds expectations, the dollar could gain support as a result. Analysts stated that this may refocus the market's attention on inflation risks, especially in the context of the August inflation data set to be released ahead of the Federal Reserve's September meeting. If the Fed's concerns about inflation risks intensify, the possibility of rate cuts for the year may be ruled out, which would prompt the market to raise interest rate expectations and further boost the dollar's performance.