How will the announcement of the NFP payrolls affect EUR/USD ?
US Nonfarm Payrolls report is expected to show 185K job gains in January, lowest number in more than two years.
On February 3rd at 13.30 GMT, the US Bureau of Labor Statistics (BLS) will release the Nonfarm Payrolls (NFP) report. The market anticipates that during January, the US economy created 185K new employment. A worse-than-expected result appears to be in the cards as the US ADP private sector payrolls plunged to 106K in January, unexpectedly falling short of the 178K consensus and lower than the 253K from the previous month. Lower US job numbers could prolong the USD's decline.
The US Dollar has been drifting near 10-month lows against its main competitors as markets interpreted Jerome Powell's most recent remarks as mostly dovish.
Markets believe the Fed may be nearing the end of its tightening cycle since Powell frequently mentioned the "disinflationary" process that currently seems to be under way during a news conference. The USD's decline is justified by this, but the move might have gone too far. If the Nonfarm Payrolls headline data surprises positively, this should signal the approaching of an upward correction in the US Dollar.
How will the announcement of the nonfarm payrolls affect the EUR/USD?
The nonfarm payrolls report will be released on February 3 at 13:30 GMT. The Federal Reserve and the European Central Bank made dovish monetary policy decisions, and as the dust has settled, the EUR/USD pair has entered a stage of negative consolidation near the 1.0900 mark. Weaker US employment data could lead to another decline in the USD and give the main currency pair more support.
In contrast, any good surprise might give the USD recovery more traction, albeit any gains might be constrained given the growing likelihood that the US central bank will stop raising interest rates.
This rekindles the bearish sentiment toward the US dollar and suggests that the EUR/USD pair should move upward along the line of least resistance.
On February 3rd at 13.30 GMT, the US Bureau of Labor Statistics (BLS) will release the Nonfarm Payrolls (NFP) report. The market anticipates that during January, the US economy created 185K new employment. A worse-than-expected result appears to be in the cards as the US ADP private sector payrolls plunged to 106K in January, unexpectedly falling short of the 178K consensus and lower than the 253K from the previous month. Lower US job numbers could prolong the USD's decline.
The US Dollar has been drifting near 10-month lows against its main competitors as markets interpreted Jerome Powell's most recent remarks as mostly dovish.
Markets believe the Fed may be nearing the end of its tightening cycle since Powell frequently mentioned the "disinflationary" process that currently seems to be under way during a news conference. The USD's decline is justified by this, but the move might have gone too far. If the Nonfarm Payrolls headline data surprises positively, this should signal the approaching of an upward correction in the US Dollar.
How will the announcement of the nonfarm payrolls affect the EUR/USD?
The nonfarm payrolls report will be released on February 3 at 13:30 GMT. The Federal Reserve and the European Central Bank made dovish monetary policy decisions, and as the dust has settled, the EUR/USD pair has entered a stage of negative consolidation near the 1.0900 mark. Weaker US employment data could lead to another decline in the USD and give the main currency pair more support.
In contrast, any good surprise might give the USD recovery more traction, albeit any gains might be constrained given the growing likelihood that the US central bank will stop raising interest rates.
This rekindles the bearish sentiment toward the US dollar and suggests that the EUR/USD pair should move upward along the line of least resistance.
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