The EUR/USD currency pair witnessed muted and sideways price action as it continue to trade within a narrow range around 1.1440 during the Asian trading hours on Friday. As investors await the all important United States Nonfarm Payrolls (NFP) surprise for May, market participants are still on edge. This vital employment report is set to be released at 12:30 GMT and could significantly influence currency movements.
During the entire Asian session, EUR/USD was in a consolidation phase and this proves that traders are still confused. The duo has shown quite a bit of resilience just above the 1.1440 mark. Investors are waiting with bated breath for the first big US economic data points.
The Nonfarm Payrolls report gets the most focus by far. It opens a window into the future, exposing vital intelligence about job growth and the overall health of the U.S. economy. Analysts anticipate that the data will offer critical information regarding the labor market, which could impact monetary policy decisions by the Federal Reserve.
Traders hang on the NFP numbers in fear of an upside surprise. Such unforeseen developments can set off enormous swings in the foreign exchange market. A perhaps unintuitive read on dollar impact A stronger-than-expected jobs report should strengthen the US dollar, and vice versa. Other market participants are looking ahead to possible volatility in the EUR/USD pair. They are eagerly awaiting to see what the new employment data will mean.
Investors will be watching other economic indicators closely as they may be released together with the NFP report. These are the unemployment rate and average hourly earnings – additional measures that shed light on labor market compliance.