Mitsubishi UFJ: Weak Nonfarm Payrolls May Prompt the Federal Reserve to Cut Rates More Than Expected

According to Jinse Finance, Mitsubishi UFJ analyst Lee Hardman stated in a report that if the US non-farm payroll data released on Friday is much weaker than expected, the US dollar may decline further. He pointed out that another disappointing employment report would reinforce market expectations, prompting the Federal Reserve to resume rate cuts at the September meeting, and possibly cut rates by 50 basis points in one go. Data shows that the market currently generally expects a 25 basis point rate cut this month, with a cumulative rate cut of over 100 basis points by September next year. Unless this non-farm payroll data is significantly better than expected, it will be difficult to dispel market expectations for a Fed rate cut in September.