Home Economy Why a strong Jobs report may not help the dollar

Why a strong Jobs report may not help the dollar

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Non-farm payrolls are due for release on Friday and the U.S. economy is expected to add nearly a million jobs. If NFPs rise by 978K, the current consensus forecast, it would be the strongest month for job growth since August of last year. The U.S. dollar should be trading higher on these lofty expectations but instead is mostly lower.
 
There are a number of reasons for this lack of enthusiasm that could affect how the dollar reacts to NFPs on Friday. While there’s no doubt that the U.S. recovery gained momentum over the past month with many businesses adding new workers not all signs point to accelerated job growth. The employment component of manufacturing sector for example slowed for the fifth straight month and there was no significant decline in jobless claims. While this won’t take much away from Friday’s jobs report, it reduces the possibility of a blowout number.
 
ISM services and ADP also fell short of expectations….

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