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US Employment Report In Focus, Dollar Indices Extend Weakness

LATAM
  • Clear global focus is on US employment data on Friday. January US non-farm payrolls are expected to have risen by +125k according to the Bloomberg survey median with risk skewed lower. The dealer median is +70k and the Bloomberg whisper is just +5k.
  • The Bloomberg dollar index tracks 1.5% lower on the week, and further declines today would mark five straight days of declines. Close attention will be paid to EURUSD price action following the release following yesterday’s sharp Euro rally, its large weighting as a DXY component and the pair trading at fresh 2022 highs above 1.1478.
  • Despite the dollar weakness, renewed equity weakness amid major central bank hawkishness most likely weighing on EMFX.

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