Economists at MUFG Bank analyze USD outlook in a week of a heavy schedule of macro events.
Nonfarm Payrolls will be key
The refunding announcement, the communication from Fed Chair Powell at the FOMC press conference and the US jobs data on Friday will be the three key events for the UST bond market.
The inability of the US Dollar to strengthen further of late is telling but we still see the window for Dollar gains as open until we see clearer evidence in official data of economic weakness – so in that sense, the NFP as always will be key.