US Jobs on the Road Report – DBS

The dollar index (DXY) is facing resistance around 102.20 after pulling back from support at 101.50 to 101.70 last week, notes Philip Wee, Senior FX Strategist at DBS.

DXY has resistance at 102.20 ahead of Friday’s US jobs report

“Friday’s monthly US jobs report will likely confirm the Fed’s desire to prevent further cooling in the US labor market. Although the consensus sees US payrolls rising to 165,000 in August from 114,000 in July, they remain below the 200,000 mark. The unemployment rate is expected to remain above 4%, despite expectations for a drop to 4.2% from 4.3%.
“Speaking after the jobs data, New York Fed President John Williams and Fed Governor Christopher Waller are expected to support the Fed’s telegraphed rate cut at the September 18 FOMC meeting. Williams was one of two Fed chairmen who voted to cut the discount lending rate in July, according to the Fed’s discounting minutes last week.”