Trading the News: U.S. Non-Farm Payrolls (NFP)
Updates to the U.S. Non-Farm Payrolls (NFP) report may fuel the recent decline in EUR/USD[1] as the economy is expected to add another 192K jobs in July.
Even though the Federal Reserve keeps the benchmark interest rate on hold in August[2], recent remarks from Chairman Jerome Powell & Co. suggest the central bank will continue to embark on its hiking-cycle as ‘the Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term.’
In turn, the Federal Open Market Committee[3] (FOMC) may continue to prepare U.S. households and businesses for higher borrowing-costs, and an upbeat NFP report may trigger a bullish reaction in the dollar as it fuels bets for four Fed rate-hikes in 2018.
However, another batch of mixed data prints may drag on the greenback as it dampens the outlook for growth and inflation, and EUR/USD may continue to consolidate over the coming days as tracks the range-bound price action carried over from the previous month. Sign up and join DailyFX Currency Strategist Christopher Vecchio LIVE[4] to cover the NFP report.
Impact that the U.S. NFP report has had on EUR/USD during the previous release
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Period |
Data Released |
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Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
