Trading the News: US Non-Farm Payrolls (NFP)
Updates to the US Non-Farm Payrolls (NFP) report may keep EURUSD under pressure as the economy is anticipated to add 160K jobs in June.
At the same time, Average Hourly Earnings are expected to pickup during the same period, and signs of a robust labor market may spark a bullish reaction in the US Dollar[1] as the economy shows little to no signs of a looming recession.
It remains to be seen if the fresh data prints will impact the monetary policy outlook as Cleveland Fed President Loretta Mester, who does not vote on the Federal Open Market Committee (FOMC) this year, insists that “cutting rates at this juncture could reinforce negative sentiment about a deterioration in the outlook even if this is not the baseline view.”
With that said, another below-forecast NFP print may produce headwinds for the Dollar as St. Louis Fed President James Bullard[2], who does vote on the FOMC[3] in 2019, suggest the central bank will insulate the US economy with an “insurance cut.”
Keep in mind, market conditions following the major US holiday may produce a limited reaction as participation remains thin going into the weekend.
Sign up and join DailyFX Currency Analyst David Song LIVE[4] for an opportunity to discuss potential trade setups.
Impact that the US NFP report had on EUR/USD during the previous print
|
Period |
Data Released |
