Non-Farm Payrolls Expected to See Largest Annual Downward Revision in History, Dollar Index Likely to Remain Volatile Before Data Release

Odaily News According to a report by Maybank, the US Dollar Index (DXY) has found support, with short positions seemingly being unwound modestly, as the market cautiously awaits the release of January's Non-Farm Payrolls data tonight. Despite last night's US December retail sales data falling short of expectations, showing no month-on-month growth, the dollar maintained some support. Market focus is on the January Non-Farm Payrolls job additions, expected to be around +65k (compared to 50k last month), with the unemployment rate likely holding at 4.4%. The 2025 annual employment figure revision is projected at -825k, which is also the main reason for the dollar's pressure and weakness this week—the market anticipates the possibility of the largest annual downward revision on record. After experiencing relatively significant volatility this week, the dollar may maintain a consolidative pattern before the Non-Farm Payrolls data release. (Jin10)