Synopsis:

Danske Bank expects the USD to strengthen following the release of the US August jobs report on Friday.

Key Points:

• The ECB is projected to implement 25bp cuts in both October and December.
• Market expectations for the Fed are split between a 25bp and a 50bp cut at the November meeting.
• Jobless claims have remained steady, with today's job openings data being crucial for assessing the labor market, as highlighted by Powell.
• Danske forecasts nonfarm payrolls to rise by 160k, slightly above the consensus of 146k.

Conclusion:

If the jobs report aligns with Danske’s expectations, it could lead to higher US yields and a stronger USD throughout the coming week.