Connect with us

Hi, what are you looking for?


3 reasons to sell the US dollar ahead of Friday’s NFP report

The first trading week of the month started with US stocks bouncing hard from their 2022 lows. Also, the US dollar gave up some of its gains.

Much has been discussed about the impact of the negative impact of a strong dollar on emerging economies and, in fact, on the global economy. In that respect, the recent weakness is seen as encouraging.

So here are three reasons to keep selling the US dollar ahead of next Friday’s September NFP report:

Softening employment in the manufacturing sector
JOLTS declined more than expected
The US dollar is well off its highs

Employment in the manufacturing sector softened

Last Monday, the ISM Manufacturing data came out worse than expected. So while the sector keeps growing, it does so at a slower pace.

Moreover, the employment component softened, as discussed in this article.

It suggests that the overall labor market in the United States is softening too, which may lead to the Fed changing its course of tightening financial conditions.

Job openings declined more than expected

JOLTS report for August, or the job openings data, was the 2nd worse on record. More precisely, US companies canceled looking for 1m new workers.

This is just another piece of information suggesting the labor market in the US is softening. Hence, the bets against the dollar should increase.

Sure enough, job openings still exceed total unemployment, but the decline is so sharp it makes one wonder what comes next.

The US dollar is well off its highs

Finally, the US dollar is well off its highs. Take the EUR/USD exchange rate, for instance. It rose from 0.95 to parity in just a matter of a few trading days.

It means that traders bet on the Fed backing down on its tightening plans. If that is the case, expect more of the same to come in the days ahead. That would be especially true if today’s ADP data and Friday’s NFP report miss expectations too.

The post 3 reasons to sell the US dollar ahead of Friday’s NFP report appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...


    U.S. District Court Judge Reed O’Connor recently ruled to uphold the rights of employers granted in the Religious Freedom Restoration Act, rather than uphold...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023