Daily digest market movers: US Dollar continues recovering while market digests mixed NFPs

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  • US Dollar continues to make gains after last Friday’s dovish Fed comments and weaker-than-expected jobs data initially saw a sell-off.
  • Greenback has staged a strong recovery and posted bullish engulfing patterns against every major currency except JPY and CHF.
  • August CPI data will be reported on Wednesday with headline inflation expected at 2.6% YoY vs. 2.9% in July. Core inflation is expected to remain steady at 3.2% YoY.
  • PPI data will be reported on Thursday with headline inflation expected at 1.7% YoY vs. 2.2% in July.
  • Fed easing expectations have steadied with odds of a 50 bps cut this month falling to 20-25%. The market is still pricing in 100-125 bps of Fed easing by year-end.
  • No Fed speakers are scheduled until Chair Powell’s press conference on September 18.


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