 Dollar continues to dominate the currency markets this week, holding its position as the strongest performer as focus shifts to the upcoming non-farm payroll report from the US. Market reactions to this data will be crucial in shaping financial movements leading up to FOMC rate decision in November. If the employment figures support a standard 25bps rate cut by Fed, risk markets may respond negatively, giving a significant boost to the greenback. Dollar is attempting to reverse its third-quarter losses against major rivals, and supportive NFP data could further enhance this momentum. Overall in the currency markets, Yen remains the weakest currency this week, influenced by diminishing expectations of a December rate hike by BoJ. Kiwi follows as the second weakest, pressured by firm expectations of a 50 bps rate cut by RBNZ next week. Sterling is the third worst performer after BoE Governor Andrew Bailey raised the possibility of aggressive rate cuts ahead. However, there is prospect for the Pound to rebound significantly if BoE Chief Economist Huw Pill sings a different tune in his speech today.... |
