After jobs report, would the Dollar maintain its downtrend? And what to expect from the oil producers’ meeting?Posted on Monday, August 7 2017 at 4:38 pm GMT+0000
After a better-than-expected jobs report, would the Dollar maintain its downtrend?
The limited rise in bond yields indicates that investors’ fears are not yet completely dissipated.
Although, the unemployment rate fell to 4.3% and the 209,000 new jobs were createdlast month, while the expectation was for 183 thousand, but wage inflation mirrored expectations.
I think the inflation data scheduled this week will be the real catalyst for the dollar’s return to the upside. Good data will dispel Federal Reserve inflation fears and boost expectations for a reate hike before the end of the year, strenghtening the Dollar back.
Of course, the absence of political concerns and the ability of the US administration to implement its electoral promises will greatly help.
What do markets expect from the producers’ meeting and will oil prices rise again?
This meeting aims at enhancing the commitment of producing countries to the next production agreement.
And thus reaching an agreement in this regard will bear good repercussions on oil prices. The success of including other countries such as Libya Nigeria within the agreement will mostly back Oil prices.
Oil prices have seen gains in recent days due to a decline in the number of US drilling platforms and a decline in stocks, but these gains will not last unless all countries are committed to cut production. This includes America and Russia as well.