BUZZ-COMMENT-NFP beat would be red rag for dollar bulls
Jan 6 (Reuters) - The dollar could build on its early-year gain if U.S. employment data comes in stronger than expected on Friday.
The Reuters poll forecast for December nonfarm payrolls is 160,000, to follow November's 227,000, with the jobless rate forecast at 4.2%, unchanged from November.
An NFP beat would cement expectations for the Federal Reserve to leave interest rates unchanged on Jan. 29, nine days after President-elect Donald Trump's inauguration.
Strong U.S. jobs data could also lessen the probability of the Fed cutting rates at its next-but-one meeting in March. Markets see an approximate 50% chance of a Fed cut on March 19. 0#USDIRPR
The USD index jumped to a 26-month high of 109.54 on Thursday (Jan. 2) as the dollar racked up big gains against the euro and pound.
USD index bull targets include 114.78, its 20-year peak in November 2022, and 120.
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(Robert Howard is a Reuters market analyst. The views expressed are his own, editing by Ed Osmond)
((robert.howard@thomsonreuters.com))
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