DXY: US jobs report on the way – DBS

The Dollar Index (DXY) faces resistance around 102.20 after its rebound from its 101.50 support level to 101.70 last week, DBS’ Senior FX Strategist Philip Wee notes.

DXY has a resistance at 102.20 before Friday’s US jobs report

”This Friday’s US monthly jobs report will likely affirm the Fed’s desire to prevent a further cooling in the US labour market. Although consensus sees US nonfarm payrolls rising to 165k in August from 114k in July, they remain below the 200k level. The unemployment rate should stay above 4% despite expectations for a decline to 4.2% from 4.3%.”
“Speaking after the jobs data, New York Fed President John Williams and Fed Governor Christopher Waller should support the Fed’s telegraphed rate cut at the FOMC meeting on September 18. Williams was one of the two Fed Presidents who voted to reduce the discount lending rate in July, according to last week’s Fed discount minutes.”