If inflation falls short of expectations after strong non-farm payrolls, the dollar may face a sharp decline

According to Jinshi reports, Morgan Stanley strategists pointed out in a report that if inflation data comes in below expectations after a strong non-farm payroll report, it often triggers the largest decline in the dollar. In this case, strong signals of U.S. growth without accompanying inflationary pressures benefit risk-sensitive currencies strengthening against the dollar. The strategists stated that the inflation swap market suggests that the January inflation report to be released tonight may be below expectations.