MUFG: Weaker U.S. Jobs, Inflation Data Needed for Dollar to Continue Lower

The dollar rebounded on Monday after falling on Friday following weaker-than-expected U.S. PCE data, MUFG analyst Lee Hardman said in a note.
For investors to push the dollar lower on a more sustained basis, they will need “weaker” non-farm payrolls and inflation reports on Friday (7th) and next Wednesday (12th).
That is the only way to convince markets that the Fed will keep rates on hold again later this month.
“A single weaker data is unlikely to prevent the Fed from raising rates for the last time this month,” Hardman said.
“Further weakening in U.S. inflation data is needed to trigger a more sustained decline (in the dollar and U.S. Treasury yields).”