The monthly jobs data will be watched to gauge whether markets are justified in pricing in a first interest-rate cut as early as March, and a figure in line with consensus could lift the dollar, MUFG said.
“A consensus print or better could see some of the March 2024 easing come out of the market.”
That could give a boost to U.S. bond yields and the dollar into the close of this week and ahead of next Wednesday’s Federal Reserve decision, it added.
November non-farm payrolls are expected to rise by 190,000, according to a WSJ poll.
USD/JPY is likely to extend its downtrend , based on technical charts, UOB Global Economics & Markets Research said, noting the currency pair’s plunge on Thursday.