Pace in greenback strength will moderate – Rabobank

FXStreet (Guatemala) – Analysts at Rabobank noted that both Treasury yields and the USD leapt higher on the release of better than expected May US labour data.

Key Quotes:

“The headline 280K print for non-farm payrolls plus a net upward revision for the past two months and an uptick in the pace of hourly earnings served to underpin market speculation that there may be sufficient momentum in the US economy for the Fed to hike rates in September.”

“In our view, however, the Fed will not be comfortable with a policy tightening until December.”

“While we expect some broad-based USD strength in the coming months we also expect that the pace of upside in the greenback will be moderate. Our 6 mth EUR/USD forecast stands at 1.06.”

Analysts at Rabobank noted that both Treasury yields and the USD leapt higher on the release of better than expected May US labour data.

(Market News Provided by FXstreet)