Upbeat US NFP Report to Fuel Post-ECB Losses

Trading the News: U.S. Non-Farm Payrolls (NFP)

Updates to the U.S. Non-Farm Payrolls (NFP) report may fuel the EUR/USD^[1] weakness following the European Central Bank (ECB) ^[2]meeting as the world’s largest economy is anticipated to add another 180K jobs in February, while the Unemployment Rate is expected to narrow to 3.9% from 4.0% per annum the month prior.

Signs of a robust labor market should heighten the appeal of the U.S. dollar^[3] as it instills an improved outlook for growth and inflation, and another positive development may undermine the recent shift in the Federal Reserve’s forward-guidance^[4] as the central bank pledges to be ‘data dependent.’

In turn, the Federal Open Market Committee^[5] (FOMC) may come under pressure to squeeze in a rate-hike later this year as the economy shows little to no signs of an imminent recession, but an NFP print below 180K may fuel the recent rebound in EUR/USD as it encourages the central bank to retain a wait-and-see approach for monetary. Sign up and join DailyFX Currency Analyst David Song LIVE^[6]to cover the fresh updates to the U.S. NFP report.

Impact that the U.S. NFP report had on EUR/USD during the last release