ING Analysis: Dollar Faces Downside Risk as U.S. Nonfarm Payrolls May Indicate Rising Unemployment

According to ING Group, the U.S. dollar may be under pressure this week as the upcoming nonfarm payrolls data is expected to show a rise in unemployment for September. The report, set to be released on Friday, could suggest a weaker labor market, potentially impacting the Federal Reserve's future rate decisions.Given the Fed's focus on employment as part of its dual mandate, markets are expected to react strongly to the details of the jobs report. If the unemployment rate rises as forecasted, it could reinforce market expectations that the Fed will proceed with a 50 basis point rate cut in November or December, further weakening the dollar.