TD Securities analysts maintain a bearish outlook for the US Dollar as labor market data softens and Fed rate hike expectations reach a cyclical peak.
TD Securities notes softer US payrolls data is only marginally negative for the Dollar, with fading rallies as Fed pricing peaks, suggesting a bearish bias for the USD.
The US Dollar faces short-term bearish pressure as market participants recalibrate expectations for Federal Reserve policy. While recent payroll data indicates a cooling labor market, analysts at TD Securities describe the sector as buoyant, preventing a sharper decline in the currency.
The bearish sentiment stems from the combination of softer payroll data and the market consensus that Federal Reserve interest rate pricing has reached its peak.