Skip to main content

Dollar remains on the backfoot ahead of non-farm payrolls

The greenback’s grind lower has continued this week amid falling US Treasury yields and strong  appetite for risk. While comments from numerous Fed speakers (including Chair Powell today) continued to point to an extended pause, PCE data and November’s ISM survey out of the US seemed enough to maintain hopes for a “soft landing” and an easing of Fed policy next year. The main focus of markets next week will be the latest non-farm payrolls report. We expect payrolls growth to have accelerated a bit, so for now the trend of the US dollar edging lower against most currencies seems likely to continue as the “Goldilocks” narrative remains firmly in place.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access