(AI video summary)
Impact of NFP report to be released this Friday
This Friday’s Nonfarm Payroll (NFP) report will have a big impact on the market. If the data shows a higher-than-expected number, it could change people’s expectations for the Federal Reserve to raise interest rates. Conversely, if the data is weaker than expected, the US dollar could rise further. The non-agricultural sector employment target for March is 200,000, lower than the previous month’s 275,000. If March’s actual number is much higher, it could mean people are less concerned about rate hikes.
dollar basket chart
Ong then shows a fancy chart called a dollar basket chart with a red line showing that the U.S. dollar is rising. However, there is also a green line on the chart that shows the opposite phenomenon – the dollar is falling instead of rising. This happened in January 2024, but then it rose again. The red line shows that the same pattern occurs again. Mr Ong reveals that investors are now focused on upcoming data and how it will impact the market. Whether the US dollar strengthens or weakens will largely depend on what Friday’s NFP report shows. If this number is better than expected, the US dollar could perform well.
