Trading the News: U.S. Non-Farm Payrolls (NFP)
Updates to the U.S. Non-Farm Payrolls (NFP) report may curb the recent advance in EUR/USD[1] as the economy is anticipated to add another 195K jobs in August.
At the same time, the Unemployment Rate is expected to narrow to 3.8% from 3.9% per annum in July, and signs of a stronger labor market should keep the Federal Reserve on track to further normalize monetary policy as central bank officials warn ‘it would likely soon be appropriate to take another step in removing policy accommodation.’
In turn, a positive development may spark a bullish reaction in the dollar as it boosts bets for four Fed rate-hikes in 2018, but another below-forecast NFP figure paired with 2.7% print for Average Hourly Earnings may drag on the greenback as it dampens the outlook for growth and inflation. With that said, a batch of mixed data prints may keep EUR/USD afloat, with the exchange rate at risk of staging a larger advance as there appears to be a broader shift in market behavior. Sign up and join DailyFX Currency Analyst David Song LIVE[2]to cover the NFP report.
Impact that the U.S. NFP report has had on EUR/USD during the previous release
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
JUL 2018 |
08/03/2018 12:30:00 GMT |
193K |
157K |
