2 December 2022 | Macroeconomics | CEOs

ING: U.S. dollar may continue decline, even despite upbeat Nonfarm data

Obviously, there has been a structural shift in the markets toward a bearish dollar position. According to economists at Internationale Nederlanden Groep (ING), current U.S. nonfarm payrolls data may not cause an inversion of this trend.

The consensus forecast itself is centred around 200,000, but analysts have mentioned a figure of 220,000. At the same time, the unemployment rate will remain at 3.7%. These rates are considered quite impressive because then they would still indicate a tight labour market. The expected data may slow down the downward trend of the dollar, but it is still not enough to reverse the currency. 

Overall, the balance of risks for the dollar today looks somewhat tilted to the downside. A wage cut to 150K could trigger a new round of big selling in the dollar.

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