Dollar on the offensive ahead of NFP; OPEC+ decision postponed – Investing.com

Dollar on the offensive ahead of NFP; OPEC+ decision postponed – Investing.com

The US dollar maintained its northward bound on Friday as investors awaited the hotly anticipated jobs report out of the United States for possible clues about Fed tapering. There have been subtle hints from Fed policymakers in recent weeks that the time to start talking about tapering is nearing and a strong NFP print for June would fuel expectations that discussions on how and when to begin withdrawing some of the pandemic stimulus will be held over the summer.

Although any move to taper the $120 billion a month in asset purchases would likely be gradual, it would still make the Fed among the first central banks to start the process. Moreover, the sooner the Fed begins to wind down bond purchases the sooner it can start raising interest rates and the recent jump in short-term yields is reflective of the growing belief among investors that the first rate hike will come in 2023 if not before.