JP Morgan adopts a cautious bullish USD bias into this week's US September payrolls.

"Our tactical conviction in USD length has increased as strong US data, more hawkish Fedspeak, and persistent energy risks suggest scope for further near-term Fed repricing; hold long-USD basket into this week's US payrolls release," JPM notes.

"But we stop short of adding fresh USD exposure as the broader global growth backdrop remains constructive and the dollar is already approaching local highs against several currencies. The US was clearly the standout in this week's PMIs, but the improvement was not confined to the US, with the Euro area composite also exceeding expectations and pointing to a broader pickup in activity," JPM adds.