ING: US employment data is key to the dollars performance

Odaily News ING analyst Turner said in a report that the upcoming U.S. non-farm payrolls report will play an important role in determining whether the recent downward trend of the dollar will continue further. Federal Reserve Chairman Powell believes that stubborn inflation and a solid labor market mean that interest rates should remain restrictive for now. Any unexpected downside in the employment report will weaken his position and push the market to price in a rate cut at the July meeting. He said that unless the employment data is weaker than expected, the dollar may continue to consolidate before the U.S. holiday on July 4. (Jinshi)