EUR/USD Rate Vulnerable to Upbeat U.S. Non-Farm Payrolls (NFP) Report

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

Updates to the U.S. Non-Farm Payrolls (NFP) report may fuel the recent weakness in EUR/USD as the world’s largest economy is anticipated to add another 185K jobs in September.

Image of DailyFX economic calendar

The Unemployment Rate is also expected to narrow to 3.8% from 3.9% per annum in August, and signs of a more robust labor market may encourage the Federal Reserve to deliver another rate-hike in 2018 as Chairman Jerome Powell notes that ‘the economy is strong, unemployment is near 50-year lows, and inflation is roughly at our 2 percent objective.

In turn, the Fed officials may continue to prepare U.S. households and businesses for higher borrowing-costs 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,’ and a set of positive developments may ultimately heighten the appeal of the dollar as market participants gear up for higher U.S. interest rates.

However, Average Hourly Earnings are projected to slow to 2.8% from 2.9% per

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