COMMENT-NFP miss could tee up Fed cut in May, damage USD

March 6 (Reuters) - Worse than expected U.S. jobs data on Friday could raise the probability of the Federal Reserve cutting interest rates as early as May, and prompt further selling of the U.S. dollar.

The Reuters poll consensus forecast for February's nonfarm payroll number is 160,000. The unemployment rate is forecast at 4.0%, unchanged from January.

Markets currently see a 43% chance of the Fed reducing rates on May 7, with a 25 basis point cut fully priced for June. 0#USDIRPR

The USD index fell to 104.01 on Thursday, its lowest level since Nov. 6, after U.S. President Donald Trump's administration exempted some automakers from its Canada and Mexico tariffs for one month. The White House said Trump is also open to hearing about other products that should be exempted from the tariffs.

USD index bear targets include 103.35 (Nov. 6 low, before the greenback jumped on Trump's election win) and 100.15 (September's 14-month low).