Strategist: If Non-Farm Payroll Data Significantly Deviates from Expectations, Expect Sharp Volatility in the Dollar and U.S. Treasury Yields

Odaily News GivTrade strategist Hassan Fawaz pointed out in a report that, given recent signs of cooling in the U.S. labor market, any significant deviation of the January non-farm payroll data from expectations could trigger sharp volatility in the foreign exchange and bond markets. He stated: "If the data is weaker than expected, it may reignite market concerns about the momentum of the labor market, strengthen expectations for monetary policy easing later this year, thereby putting pressure on the U.S. dollar." He also noted that if the data shows strong performance, it could challenge the aforementioned expectations, supporting the dollar and pushing yields higher. (Jin10)