Analysis: Payrolls Downside Not Priced by FX as Fischer Says It's Key
Currency traders are looking one way on a two-way street.
Fifty U.S bills are run through a counting machine at a currency exchange house in Mexico City.
Photographer: Susana Gonzalez/BloombergThis article is for subscribers only.
Foreign-exchange markets aren't pricing in enough downside risk ahead of Friday's nonfarm payrolls report after Federal Reserve Vice Chairman Stanley Fischer specifically called out that report as key in the Fed's decision-making, when he spoke at Jackson Hole last week.
Fischer said on Friday that the jobs data will weigh on the Fed's decision about whether to increase rates at their September meeting, which traders took to mean the central bank is itching to hike. Fischer backed that up by noting the monthly numbers have been strong recently as well.